As a result of COVID-19, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-05. The ASU provides the option to defer the revenue recognition standard (Topic 606) for one year or to annual reporting periods beginning after December 15, 2019. The option is available for nonpublic entities that have not yet issued their financial statements.
The ASU also defers the effective dates of the Leases standard (Topic 842) for one year for all nonpublic entities and public Not-For-Profits (NFP) entities. The Topic 842 is now effective for all nonpublic entities for periods being after December 15, 2021. Public NFP entities will need to apply the standard to reporting periods beginning after December 15, 2019.