Yesterday the Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update that changes the effective date for certain new accounting standards. Private companies and nonprofits will benefit from the additional time to evaluate and implement the new lease, expected credit loss (CECL), and hedge accounting standards. The following are the proposed new effective dates:
- Leases- years beginning after December 15, 2020
- CECL-years beginning after December 15, 2022
- Hedging-years beginning after December 15, 2020
Many private companies have struggled accumulating the data to comply with the new standards. While many companies were hoping the standards would be eliminated for private businesses due to the significant amount of time required to analyze, understand, and perform the required calculations, the FASB opted to propose extending the effective dates rather than exempt private companies from the standards.
How can ARB help? We are available to assist with understanding the new standards and creating a plan for implementation. If you haven’t started evaluating the standards, contact us to discuss a strategy for getting started.