FASB Approves Delayed Effective Date for Major Standards

Chris Gaetano
Published Date:
Oct 17, 2019
contract-1464917_1920 (1)

The Financial Accounting Standards Board (FASB) voted to delay the effective date of its incoming standards on leases, credit losses, hedging and long-duration insurance contracts, according to Accounting Today. The delays, however, are not uniform.

The hedging and leasing standards are already in effect for public companies, though not yet for private companies and nonprofits, which were set to begin implementation in 2020. The effective date has now been moved to January 2021.

The credit losses standard, which was set to take effect in January 2020, will now be January 2021 for most SEC filers, which in turn has pushed back the effective dates for smaller public entities, private companies and nonprofits to January 2023. 

Finally, the new insurance contracts standard's effective date for public entities has moved from January 2021 to January 2022, with smaller public entities, private companies, and nonprofits having a new effective date of January 2024. 

Click here to see more of the latest news from the NYSSCPA.