Hooray for the Delay
In July, we noted that the Financial Accounting Standards Board (FASB) had proposed a delay in the effective date for several major accounting standards (Hedge Accounting, Lease Accounting, CECL and Insurance Accounting). Yesterday, FASB voted and approved the proposals to extend these implementation deadlines for non-SEC filers and smaller reporter companies (SRCs) by a year.
However, this delay in standard implementation is not for everyone. Generally, the delay applies to only non-public entities (private entities, not for profit entities and employee benefit plans) and smaller reporting companies (SRCs).
Revised transition dates for CECL, Insurance, Hedge Accounting and Lease Accounting:
|
Accounting Standard |
SEC filers, excluding SRCs |
All other entities[1] |
|
Topic 326 CECL |
1/1/2020 |
1/1/2023 |
|
Topic 944 Insurance |
1/1/2022 |
1/1/2024 |
|
Topic 815 Hedge accounting |
1/1/2019[2] |
1/1/2021 |
|
Topic 842 Lease accounting |
1/1/20192 |
1/1/2021 |
[1] Early adoption will still be permitted where applicable.
[2] These standards are already effective for SEC filers and PBEs, including SRCs.
Next Steps for FASB
The FASB staff will finalize the Accounting Standard Update (ASU) and issue the new ASU in November.
For more information about they delay, why it happened and how to determine if you are impacted, please click here.
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