Leasing Standard Effective Date Extended

July 18, 2019

Last night, July 17, 2019, FASB voted to issue an exposure draft to extend the effective date of the leasing standard for non-public companies.  The new effective date will be years beginning after 12/15/20 (i.e., calendar 2021).  This represents a one year deferral from the current requirement.  FASB indicated they believed another year of education is warranted as practitioners are discovering the uniquely difficult provisions for lessees contained in the standard. 

ASCPA CPE leader, Jim Martin, CPA, CGMA commented, "As a CPE provider and practitioner, I can tell you this is warranted based on what I have experienced in early adoptions of the standard as well as talking to thousands of practitioners about it for each of the last eight years."

The Journal of Accountancy released more information in "FASB to propose delaying effective dates for 4 major standards."

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