The new lease accounting standard set to take affect could receive a delay according to a plan from the Financial Accounting Standards Board (FASB). FASB is considering the delay in the wake of the COVID-19 pandemic which would affect private companies and nonprofit organizations. Furthermore, a delay of an additional year for the new revenue recognition standard is being considered for private franchisor companies.
FASB chairman Russell Golden said ““In the coming days, the FASB will issue a proposal to provide certain private companies and not-for-profit organizations with an optional, one-year effective date delay of the leases standard. Stakeholders will have a 15-day comment period from the time of issuance to review and provide comments on the proposal.”
Franchisors have been requesting an extension to implementing the revenue recognition standard since February.
This is a developing story and will be updated as decisions are made. For more information, visit: https://www.accountingtoday.com/news/fasb-proposes-to-delay-accounting-standards-in-response-to-coronavirus