The Financial Accounting Standards Board (FASB) has officially extended implementation of the new lease accounting and current expected credit losses (CECL) standards by one year. The announcement was expected by FASB after it first voted for the extension in July, then put the proposal out for public comment, which expired in mid-September. After studying the impact of these new standards on private companies, FASB determined that they would benefit from having an additional year to comply.
For non-public companies, the new lease accounting standard will be effective for annual periods beginning after December 15, 2020.
For smaller reporting companies, public business entities and all non-public companies, the new CECL standard will be effective for annual periods beginning after December 15, 2022.
Take advantage of the extension to prepare for the new implementation date by reaching out today to a CSH advisor — we will help you plan for compliance to the new standard.
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