Leases: Another Effective Date Extension? – Mark Rodruck, Partner, CPA
On April 8, 2020 the Financial Accounting Standards Board (FASB) proposed delaying the effective date for private companies lease accounting, ASC Topic 842 with a 15 day comment period because of the challenges related to the Coronavirus pandemic. If the delay is adopted, the effective date for ASC Topic 842 will be deferred from, fiscal years beginning after December 15, 2020 to fiscal years beginning after December 15, 2021. We will continue to research this topic, implementation and third-party software vendors to ensure we can provide you proper guidance.
So for a history lesson, the private company original effective date for ASC Topic 842 was for years beginning after December 15, 2019. In July of 2019 the effective date was deferred for one year, or years beginning after December 15, 2020. Stay tuned, we will keep you posted.