It’s been pushed back before, and now, in the midst of the COVID-19 epidemic, it’s happening again.
The Financial Accounting Standards Board (FASB) has proposed deferring the effective dates for the Lease standard (Topic 842) for yet another year.
For private companies and private not-for-profits, the standard will be effective for fiscal years beginning after December 15, 2021.
For not-for-profits that have issued or are conduit bond obligors for securities that are traded, listed, or quoted on an exchange or over-the-counter market, the effective date will be pushed back to fiscal years beginning after December 15, 2019.
There will be a 15-day comment period, but given the stress and hardships many entities are already enduring, it is likely that this new proposal will become an accounting standard update in a matter of weeks.
For more information or questions on the new lease standard, contact William Donahue or your Aronson advisor at 301.231.6244.