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FASB Proposes Another Delay in Effective Date for Private Company Lease Accounting

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According to the Journal of Accountancy, members of FASB have unanimously voted to consider amending the effective date of ASC Topic 842, Leases, to fiscal years beginning after December 15, 2021. Businesses have faced immense challenges in recent weeks due to the COVID-19 pandemic and the significant impacts it has had on the economy. FASB believes a delay in lease accounting would provide private businesses and not-for-profits additional capacity to support business operations as economic circumstances recover.

FASB will draft a proposal with a 15-day comment period before evaluating the comments and voting on the proposal. The article noted FASB will continue to evaluate the progress of the pandemic and its effects on the economy and may consider additional delays in effective dates of other standards, if necessary.

As always, BP will continue to monitor any developments regarding this delay or other announcements made by FASB, as well as other impacts from the COVID-19 pandemic. Please reach out to us with any questions you may have.

See the full Journal of Accountancy article here.


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