On June 3, 2020, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) that grants a one-year effective date delay for certain companies and organizations applying the revenue recognition and leases guidance.
The ASU permits private companies and nonprofit organizations that have not yet issued financial statements adopting the revenue recognition standard (ASC 606) to do so for annual reporting periods beginning after December 15, 2019, and interim reporting periods within annual reporting periods beginning after December 15, 2020.
For private companies with calendar year ends, the new leasing standard is now effective for their December 31, 2022 financial statements. Early adoption continues to be permitted.
For more information, visit: www.fasb.org