FASB Discusses Its Response to COVID-19

At its April 8, 2020, meeting, the FASB discussed (1) effective date considerations as a result of the COVID-19 disruptions and (2) other COVID-19 related matters.

The Board decided to add to its technical agenda a project to amend the effective date of (1) ASC 606, Revenue From Contracts With Customers, for franchisors that are not public business entities and (2) ASC 842, Leases, for private companies, private not-for-profit (NFP) entities, and NFP entities that issue, or are a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or over-the-counter market. The Board directed its staff to draft a proposed ASU — with a 15-day comment period — for vote by written ballot.

The Board also discussed feedback on technical inquiries related to the effects of COVID-19 on the accounting for leases, interest income, derivatives and hedging, and fair value measurement.

For more information, see Deloitte’s related Heads Up newsletter on these decisions.