Revenue Recognition and Leases Standards Expected to be Delayed by FASB
The Financial Accounting Standards Board (FASB) voted on Wednesday, May 20th, to delay the effective date of the revenue recognition and leases standards for certain entities. An Accounting Standards Update is being drafted and will be approved at a later date.
Here are the main updates to the standards’ effective dates:
- The revenue recognition standard will provide the option to delay implementation for one year for those private companies and not-for-profits that have not issued their current year financial statements. The effective date for the standard will be extended to annual reporting periods beginning after December 15, 2019
- The leasing standard will be delayed for private companies and not-for-profits and will be effective for fiscal years beginning after December 15, 2021.
Early adoption for both standards will continue to be permitted.
Should you have any questions, please reach out to a Sax advisor for guidance. We can be reached at (973) 472-6250 or www.saxllp.com.