Feeling the stress of implementing ASC 842 one year after the adoption of the new revenue standard? You were not alone, and the Financial Accounting Standards Board (FASB) heard you.
On October 16, the FASB voted to issue an Accounting Standards Update (ASU), which is expected in November. The update extends the adoption date for private companies to fiscal years beginning after December 15, 2020, pushing out the effective date to January 1, 2021 for entities with calendar fiscal years. This deferral, along with the deferral of Measurement of Credit Losses of Financial Instruments (ASU No. 2016-13) and Targeted Improvements to Accounting for Hedging Activities (ASU No. 2017-12) will grant private companies two additional years to adopt new standards after their public company peers.
This is a big relief, as the FASB noted many companies are struggling to undertake this significant implementation in the previous allotted timeframe. The Board hopes companies will take advantage of the additional time to gain a deeper understanding of the nearly 200-page standard and have a successful adoption of the new standard.
BPM’s Technical Accounting Group is here to assist with your Lease Standard implementation, including technical accounting and incremental borrowing rate analyses. BPM’s goal is to provide efficient accounting advisory services, so you can continue to focus on your core business operations.
Contact BPM’s Will Tanem today at WTanem@bpmcpa.com to learn more.