FASB could delay implementation of new accounting lease standard
April 13, 2020
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 â€œâ€œIn 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.â€
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