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Accounting Relief – Lease Accounting Standard Delayed Again

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In light of the immense challenges businesses are facing due to the COVID-19 pandemic, the Financial Accounting Standards Board (FASB) has approved a delay in the effective date of ASC Topic 842 – Leases, for private companies and not-for-profits. The final Accounting Standard Update formalizing the delay is expected to be issued in June.

The new lease standard was originally effective for private companies with annual reporting periods beginning after December 15, 2019, and has been delayed twice. The standard will now be effective for periods beginning after December 15, 2021 for private companies.

The COVID-19 pandemic has caused significant disruption to many businesses; the FASB has determined that an additional one-year delay of the lease standard would allow private companies to focus their resources on adapting to the new realities of the pandemic.

If you have any questions about Topic 842, the impacts of this delay, or other COVID-19 impacts, please reach out to your Berntson Porter representative.

Berntson Porter is here to help you navigate these unprecedented times. Visit our online Resource Center for up-to-date information about COVID-19 legislation that impacts you and your business.