Revenue recognition and lease accounting remain a challenge for private companies after a one-year, pandemic-related delay in effective dates provided financial statement preparers some relief.

Changes to accounting for revenue under Accounting Standards Update (ASU) 2014-09, Revenue From Contracts With Customers (Topic 606), and leases under ASU 2016-02, Leases (Topic 842), have been on private companies’ radar for many years. In June 2020, FASB deferred the effective dates of these standards for certain companies by one year, to provide relief as a result of the COVID-19 pandemic, by issuing ASU 2020-05.

You can read the full article from the Journal of Accountancy here.