Due to the challenges placed on non-public companies to implement the new standards on lease accounting and accounting for credit losses, the Financial Accounting Standards Board (FASB) voted on July 17, 2019 in favor of one-year delays in the effective dates for non-public entities. The delay will not be confirmed until a required public comment period takes place, but we expect this to be finalized, as is.
The delay will result in the lease standard being effective for years beginning after December 15, 2020 (2021 calendar year-ends) and the credit loss standard being effective for years beginning after December 15, 2022 (2023 calendar year-ends). These delays will provide a great help to non-public companies in their implementations.
In addition to these proposed delays, for future major standard changes, the FASB board has also signaled an interest in providing two-year delays between the effective dates for public and non-public entities rather than the one year delay that’s been provided historically. The FASB is also interested in putting forth the same delays provided to non-public entities to smaller public companies and to those not-for-profit entities which currently fall under the public entity effective dates. We continue to advocate for relief such as this through our involvement at both the State and National level.
To learn how these standards may impact your business or begin working on implementation plans please email me here, call me at 513-241-8313, or have a member of your Barnes Dennig client service team reach out to you here.