This article, "FASB Proposes Additional Delay of Extension Dates for Certain Standards for Private Companies and Not-for-profit Entities," originally appeared on Larsco.com.
Summary provided by MaterialAccounting.com: This article discusses recent proposed updates to FASB standards, including ASC 606 and ASC 842, for certain private companies and nonprofit entities.
In a meeting held on April 8, 20201, FASB voted to propose one-year deferral in the effective dates the revenue and lease standards for certain private companies and not-for-profit entities. These proposals are subject to public comments. The proposal includes the following:
| Guidance | Industries impacted | Changes of effective date |
| ASC 606, Revenue from Contracts with Customers | Non-public Franchisors that have not yet issued financial statements reflecting the adoption of ASC 606. | Adoption of ASC 606 will not beginning until periods beginning after December 15, 2019.
FASB will be working on expedients for franchisors relating to initial franchise fees during this time |
| ASC 842, Leases | Not-for-profits and private companies | Adoption of ASC 842 will be deferred as follows:
· Public not-for-profits that have not yet issued financial statements will begin for periods after December 15, 2019 · All other private companies and private not-for-profit companies will begin for period after December 15, 2021 |
Stakeholders will have a 15-day comment period form the time of issuance to review and provide comments on these proposals. FASB will also temporarily suspend issuance of other public exposure documents and defer work that requires public outreach on other technical agenda programs to focus on supporting stakeholders as they navigate the impact of the COVID-19.
For more information, please contact your Larson advisor.
