On October 16th, the FASB unanimously approved an additional delay for private companies on three major upcoming standards, including Leases (Topic 842), Financial Instruments – Credit Losses (Topic 326), and Derivatives and Hedging (Topic 815).
While the credit losses and hedging standards significantly affect certain private companies, it is likely that the leasing standard will significantly affect most private companies preparing general purpose financial statements. For a calendar year end private company, the new leases standard will now be effective in 2021 (originally Topic 842 would have been effective in 2020).
The final Accounting Standards Update on this decision is expected to be released in November 2019.
Please contact Mike Cheng (firstname.lastname@example.org) to see how Frazier & Deeter can help you implement the new leasing standard.