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BP Blast: Lease Accounting Standard Postponed

The Financial Accounting Standards Board (FASB) has approved a delay in the effective date of ASU 2016-02 – Leases for private companies, according to the Journal of Accountancy.

The new lease standard, previously effective for annual reporting periods after December 15, 2019, will now be effective for periods beginning after December 15, 2020.

With private companies recently implementing the new revenue recognition guidance, FASB determined that a one-year delay of the lease standard would provide private companies with the necessary time to understand the guidance and prepare for implementation.

If you have any questions about the standard or the impacts of this delay, please reach out to your Berntson Porter representative.