FASB officially delays 4 major standards

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FASB officially delays 4 major standards

On Friday, FASB issued two new Accounting Standards Updates (ASU) that delay many of the effective dates for new standards on leases, hedging, current expected credit losses (CECL), and long-duration insurance contracts.

The updates came a month after FASB voted unanimously to delay certain effective dates for leases, hedging, and CECL and to align the effective dates for long-duration insurance contracts with the new CECL standards.

The new ASUs are as follows:

The ASUs establish the following effective dates:

Early-adoption options for the standards remain unchanged.

FASB began considering the delays in response to concerns from preparers struggling to cope with the major changes to the standards. The concerns of preparers led the AICPA’s Technical Issues Committee (TIC) to send FASB a letter in May requesting a delay in the lease accounting standard effective date for private companies.

Jeff Drew (Jeff.Drew@aicpa-cima.com) is a JofA senior editor.

Research & References of FASB officially delays 4 major standards|A&C Accounting And Tax Services
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FASB officially delays 4 major standards

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