On October 16, 2019, the FASB voted unanimously to defer the effective dates on several new standards. These delays will benefit most private companies (including smaller reporting companies as defined by the SEC) and not-for-profit entities. Conduit bond obligors that are not scoped out of the FASB ASC glossary definition of a Public Business Entity (PBE) will still be required to follow the initial effective dates included within the Leases, Financial Instruments – Credit Losses, and Derivatives and Hedging standards.
For most private companies and not-for-profit entities, the standards and effective dates for the specific standards below would be:
- ASU 2016-02 Leases (Fiscal years beginning after December 15, 2020)
- ASU 2016-13 Financial Instruments – Credit Losses (Fiscal years beginning after December 15, 2022)
- ASU 2017-12 Derivatives and Hedging (Fiscal years beginning after December 15, 2020)
- ASU 2018-12 Financial Services – Insurance (Fiscal years beginning after December 15, 2023)
Final rules on the effective date changes on all four accounting standards will be issued mid-November according to board discussions.
If you have any questions or would like further clarification, please don’t hesitate to contact us to schedule a brief call.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.