Private companies now have until 2021 to follow the new lease accounting rules that public companies adopted earlier this year.

The Financial 会计 Standards Board (“FASB”) voted July 17th to give privately held companies additional time due to the complexities of the lease accounting standards changes as well as being on the heels of the revenue recognition major changes. The FASB new rules on lease accounting standards resulted in multiple changes on how companies report leased assets and liabilities and these changes are particularly cumbersome for privately held companies. The year reprieve should not be viewed as a time to postpone getting started in prepping for implementation or giving an excuse to put on hold current progress in this process if you have already begun to implement, rather it should highlight the complexity and work needed to reach compliance.

This is a tentative decision, pending comments, but is not expected to receive much opposition.

There is a comment period of 30 days which allows practitioners and users of financial statements to comment on the deferment. Overturning this decision is not expected.

Attention: 会计 Rule Delays in the Works

7月17日的投票, 2019, by the Financial 会计 Standards Board (FASB) issued a proposal that would delay several landmark accounting rules for certain companies. 如果最终确定, the deferral would apply to new guidance for reporting leases, 套期保值交易, credit losses and long-term insurance contracts.

FASB变更的完整摘要

The table below summarizes key implementation date changes that the FASB unanimously voted to propose.

会计准则更新(ASU)Types of entities affected by the proposed date changesCurrent effective date for calendar-year entitiesProposed effective date for calendar-year entities
No. 2016 - 02年,租赁私人公司和非营利组织20202021
No. 2017-12，衍生品和对冲私人公司和非营利组织20202021
No. 2016-13, Financial Instruments — Credit Losses较小的报告公司20212023
私人公司和非营利组织20222023
No. 2018-12，金融服务-保险上市公司20212022
较小的报告公司, private companies and not-for-profits20222024

The term “smaller reporting companies” refers to those that have either 1) a public float of less than $250 million, or 2) annual revenue of less than $100 million and no public float or a public float of less than $700 million.

Unexpected Delays for Private Companies and Nonprofits

Private companies and nonprofits often receive an extra year to implement major accounting standards updates, compared to the effective dates that apply to public companies. In a shift in its philosophy for setting reporting dates on major new accounting standards, the FASB wants to give certain entities even longer to implement the changes.

为什么需要这些延误?

Many entities continue to struggle with implementing the new revenue recognition guidance that went into effect in 2018 for public companies and 2019 for other entities. A possible deferral of other new rules would also allow smaller entities to learn from public companies how to implement the changes — and it would give accounting software providers extra time to update their packages to support the new reporting models.

FASB提案即将出台

The FASB is expected to issue its proposal as soon as possible. Then it will be subject to a 30-day comment period.

These deferrals, if finalized, would be welcome news for many organizations. But they’re not an excuse to procrastinate. Depending on your industry and the nature of your transactions, implementing the changes and educating stakeholders could take significant resources. 联系 us before the implementation deadline to come up with a realistic game plan.

Consider partnering with LBMC as you prepare your transition.

Link to 巴克 Financial 会计 Standards Board Update July 2019

巴克 弗里曼

股东、审计和咨询

手机图标 电子邮件图标 纳什维尔
手机图标 电子邮件图标 纳什维尔