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FINANCIAL ACCOUNTING STANDARDS BOARD VOTES TO DELAY EFFECTIVE DATES OF NEW LEASE ACCOUNTING STANDARDS

October 22, 2019

FINANCIAL ACCOUNTING STANDARDS BOARD VOTES TO DELAY EFFECTIVE DATES OF NEW LEASE ACCOUNTING STANDARDS

On October 16, the Financial Accounting Standards Board (FASB) voted to issue final Accounting Standard Updates (ASUs) to delay the effective dates of new standards for accounting for leases, credit losses and hedge accounting. The effective dates have been amended as follows:

SEC filers – The effective date for Hedge and Lease Accounting would remain unchanged for fiscal years beginning after December 15, 2018 while Credit Loss Accounting would also remain unchanged for fiscal years beginning after December 15, 2019. Smaller companies would receive an extension for the new credit loss reporting standards to fiscal years beginning after December 15, 2022.

Other public business entities – Credit loss accounting effective dates would change to fiscal years beginning after December 15, 2022. Effective dates for Hedge and Lease Accounting would remain unchanged at fiscal years beginning after December 15, 2018

All other entities not covered above – Effective dates for Hedge and Lease Accounting will be delayed to fiscal years beginning after December 15, 2020. For Credit Loss Accounting, the delay will push reporting requirements to fiscal years beginning after December 15, 2022.

While the delay is a sigh of relief for many, the time gained should be used to prepare for the impending changes. We can assist you through this accounting transition to ensure all financial reporting requirements are being met and to avoid the headaches of last second adjustments

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