FASB proposes delay in 3 key effective dates

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FASB proposes delay in 3 key effective dates

Certain financial statement preparers would receive the benefit of effective date delays in FASB’s accounting standards for leases, hedging, and credit losses under a proposal the board issued.

In response to preparers’ concerns about overload while implementing these three significant standards, FASB proposed amending the effective dates.

In the proposal, FASB articulates a new philosophy that would extend and simplify how effective dates for major standards are staggered between larger public companies and all other entities, including private companies, smaller public companies, notforprofits, and employee benefit plans.

The philosophy calls for a major standard to take effect first for larger public companies, with the board considering requiring an effective date for other entities at least two years after the larger public company effective date. Early application would be generally expected to be permitted for all entities.

Under the proposal, effective dates for the lease accounting, hedge accounting, and accounting for credit losses standards would be affected as follows:

Comments were accepted through FASB’s website until Sept. 16.

Research & References of FASB proposes delay in 3 key effective dates|A&C Accounting And Tax Services
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