HOT TOPICS / INSIGHTS

Client Alerts
July242019
FASB Proposal Would Defer a Host of Effective Dates

Grace Singer, CPA

07.24.19 | Client Alert

The Financial Accounting Standards Board, at a July 17, 2019 meeting, proposed giving a wide array of entities more time to adhere to guidance in its Accounting Standards Codification (ASC), including a proposed extension to ASC 842 Leases. The proposal — which still must go through a comment period followed by deliberation before it can be finalized — would impact small public lenders, private lenders, and not-for-profits, among others. Berdon will continue to monitor and report on developments as the proposal moves through the process.

Here are the proposed changes:

Proposed Guidance ChangeEntities ImpactedProposed Date Change
ASC 842
Leases
Non-SEC filers as defined
by the ASC
• Private companies
• Not-for-profits
• Employee benefit plans
1-year deferral
For Example:
The effective date for non-SEC filers
with a calendar year end will change
from its year ending December 31, 2020
to its year ending December 31, 2021.
ASC 326
Financial Instruments -
Credit Losses
Non-SEC filers as defined
by the ASC
• Private companies
• Not-for-profits
• Employee benefit plans
1 or 2-year deferral
For Example:
The effective date for non-SEC filers
with a calendar year end will change
from its year (and interim period, if
applicable) beginning January 1, 2021
or 2022 (as otherwise required) to its
year (and interim period, if applicable)
beginning January 1, 2023.
ASC 815
Amendments,
Derivatives and Hedging
Non-SEC filers as defined
by the ASC
• Private companies
• Not-for-profits
• Employee benefit plans
1-year deferral
For Example:
The effective date for non-SEC filers
with a calendar year end will change
from its year ending December 31, 2020
to its year ending December 31, 2021.

If you have questions, contact Grace Singer at 212.331.7509 | gsinger@berdonllp.com or your Berdon advisor.

Berdon LLP New York Accountants

Share: