In November 2019, the AICPA published the first of a new semi-annual newsletter, PR Prompts!, designed to help CPAs keep current on peer review news.
The AICPA gave me permission to reprint portions of the newsletter on my blog.
This is the second of six posts to help you stay up to date.
The following comment is quoted verbatim. For ease of reading it will not be set inside quotation marks:
FASB Defers Effective Dates for Three Major Accounting Standards
Effective dates will be delayed for private companies and certain other entities for the Financial Accounting Standards Board’s (FASB’s) standards on accounting for leases, credit losses (CECL) and hedging after a unanimous vote by FASB in October 2019. FASB directed its staff to draft an Accounting Standards Update (ASU) that will change the effective dates and will be issued following a formal written ballot by FASB, which is expected to take place in November. In a separate project, FASB voted to delay the effective date of its standard for accounting for insurance companies issuing long-term insurance contracts.
FASB began considering the delays in response to concerns from overwhelmed preparers. Many of those concerns were voiced in a letter that the AICPA’s Technical Issues Committee sent to FASB in May to request a delay in the effective date for private companies for the lease accounting standard. Refer to the FASB Votes to Delay Effective Dates for 3 Major Standards Journal of Accountancy article for more information.
As mentioned at the top of this post, this article is reprinted with permission of the AICPA.