As expected, the Financial Accounting Standards Board (FASB) announced that the new lease accounting standard will be delayed for one year for non-public companies. This will give private companies, nonprofits and small companies in particular more time to prepare.
The amendments to the Leases Standard (ASU No. 2016-02, Leases – Topic 842)
amend the effective dates as follows:
- Nonpublic entities (FASB definition) – first annual reporting period beginning after December 15, 2020. This affects 12/31/2021 year-ends.
- Nonpublic entities (FASB definition) – first interim reporting period beginning after December 15, 2021. This affects 1/31/2022 month-ends.
For more information, please contact your Yeo & Yeo advisor or read this article about the FASB vote in the Journal of Accountancy.