FASB Delays Revenue Recognition and Leasing Standards

Jun 3, 2020Covid-19, Nonprofit

Financial Accounting Standards Board (FASB) voted to delay the effective dates of revenue recognition and leases standards

Following last month’s proposal to defer the effective date of two standards for private companies and nonprofit organizations, the Financial Accounting Standards Board (FASB) voted to delay the effective dates of revenue recognition and leases standards on May 20. The standards extension comes as a response to complications caused by the coronavirus pandemic.  

This is not the first time that the effective dates for revenue recognition have been extended. The revenue recognition standard was initially supposed to go into effect in 2017 for public companies and 2018 for private companies. In 2015, FASB extended the effective dates to 2018 for public companies and 2019 or 2020 for nonprofits (varies with the nonprofit’s reporting period).

Similarly, lease standards have also been delayed prior to this year. While the standards took effect for public companies at the beginning of last year, FASB had already delayed the effective date for private companies and nonprofits to the beginning of 2020. Now the leases standard for private companies and nonprofits will be effective for fiscal years beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022. 

Blank

Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings.

Trending Posts

Subscribe to our Blog

Related Industry Posts

Minnesota Frontline Worker Payments

Minnesota Frontline Worker Payments

he Minnesota Department of Labor and Industry is currently developing an online application system for eligible workers to apply for a bonus payment. There will be a 45-day application period and a 15-day appeal period for denied applications.

read more

Subscribe to our blog

SEND US A MESSAGE

We appreciate your interest in Smith Schafer and would love to hear from you.So please complete this form or feel free to email us directly at: [email protected]