By Ane Ohm on April 10, 2020 at 8:10 AM
On Wednesday, April 8, 2020, the Financial Accounting Standards Board (FASB) met to discuss the coronavirus crisis and its impact on upcoming accounting standards.
Proposed one-year delay
One of the outcomes of that meeting was a proposed delay to the effective date of the new lease standard for both non-public organizations and public non-profit entities. If the delay does indeed occur:
- The new effective date for non-public organizations will be the fiscal year starting after 12/15/21
- The new effective date for public non-profit entities will be the fiscal year starting after 12/15/20
While we won’t know the final decision until after a public comment period and the proper process is followed, we expect that this means there will, in fact, be another delay.
This isn’t the first
The original effective date for non-public organizations was for fiscal years beginning after 12/15/19. Amid calls from industry voices that private organizations needed more time to comply, FASB last fall announced a final decision to push the effective date back to 12/15/20.
If this latest proposal is finalized (which we expect it to be) it will be the second delay in effective date for private organizations.
The impact for your clients
While some non-public organizations are ahead of the curve and will continue preparing for the new standard, it’s likely that most of your clients haven’t given it much thought yet.
This likely delay allows you and your clients one more year of preparation, and most importantly, one less thing to worry about during this global health crisis.
LeaseCrunch will continue to support you and your clients through this time of uncertainty and beyond. If we can help in any way, please get in touch!