FASB votes to delay effective dates for 3 major standards

by | Dec 28, 2019 | Uncategorized | 0 comments

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FASB votes to delay effective dates for 3 major standards

Effective dates were set to be delayed for private companies and certain other entities for FASB’s standards on accounting for leases, credit losses (known as CECL), and hedging after a unanimous vote by FASB.

In a separate project, FASB voted to delay the effective date of its standard for accounting for insurance companies issuing longterm insurance contracts.

Under a Proposed Accounting Standards Update (ASU), the effective dates will be as follows:

The board was expected to take a formal ballot on the changes in November. Earlyadoption options for the standards will remain unchanged.

FASB also voted to align the effective date of ASU No. 201704, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, with the amended effective dates for the credit loss standard.

The new effective date for the longterm insurance contract standard for SEC filers excluding eligible smaller reporting companies will be fiscal years beginning after Dec. 15, 2021, and interim periods within those fiscal years. For all other entities, the longterm insurance contract effective date will be fiscal years beginning after Dec. 15, 2023, and interim periods within fiscal years beginning after Dec. 15, 2024.

Research & References of FASB votes to delay effective dates for 3 major standards|A&C Accounting And Tax Services
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FASB votes to delay effective dates for 3 major standards

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