FASB Reconfirms Lease Standard’s Effective Date
While some companies continue to struggle with the implementation of Accounting Standards Update No. 2016-02, Leases (Topic 842), the Financial Accounting Standards Board (“FASB”) has no plans to postpone the standard’s 2019 effective date for public businesses. On August 29, an FASB spokesperson said that the board would not consider a request to give companies more time to comply with the lease accounting standard. The spokesperson also remarked that there are no plans to delay the standard’s effective date.
As mentioned in our August 11 blog, the American Petroleum Institute (“API”) asked the FASB to delay the standard by two years. The API argued that the new lease accounting guidance was more complex and required additional analysis than first expected. Pushing the effective date to 2021, the API said, seemed more realistic.