- October 19, 2019
- Posted by: Armarius Software
- Category: Finance & accounting
Its official! The Financial Accounting Standards Board (FASB) on Wednesday approved a delay in the effective date of the new lease standard by one year. This decision provides private companies additional time to prepare for the new standard. In addition to the delay of the lease standard, the FASB also voted to delay the effective date of other significant accounting standards, including the new credit loss standard issued in 2016. The FASB announcement and listing of affected accounting standards can be found here: https://www.fasb.org/cs/ContentServer?c=FASBContent_C&cid=1176173615325&d=&pagename=FASB%2FFASBContent_C%2FNewsPage.
The new lease standard, Accounting Standards Codification (ASC) 842 Leases, will now become effective for private companies for fiscal years beginning after December 15, 2020.
We encourage our clients to not postpone preparations for adopting the new standard. Many lease contracts that previously were not reported on the financial statements will now need to be recognized and it is important to assess the financial impact and communicate proactively with stakeholders. Contact XPECT today for assistance in planning and executing your ASC 842 adoption with one of our consultants.