FASB Amends Annual Reporting Period Dates of ASC 842, Leases
On April 8, 2020, the FASB Board decided to amend the effective date of ASC 842, Leases, for private companies and private not-for-profit (“NFP”) entities to annual reporting periods beginning after December 15, 2021, and to interim periods within fiscal years beginning after December 15, 2022.
The Board also decided to amend the effective date of ASC 842 for NFPs that have issued or are conduit bond obligors for securities that are traded, listed, or quoted on an exchange or an over-the-counter market (public NFPs) and which have not yet issued financial statements.
For these entities, the Board decided to amend the effective date to be fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption will continue to be permitted. The Board decided to provide a 15-day comment period for the proposed update, and the Board directed the staff to draft a proposed Accounting Standards Update for vote by written ballot.
We will continue to monitor developments and share updates related to ASC 842, Leases. If you have further questions, please contact Roselle Bonnoitt or your trusted Cherry Bekeart professional.