Highlights of the FASB’s May 20 Meeting
May 21, 2020
At its May 20, 2020, meeting, the FASB (1) discussed its limited effective-date
delays for guidance on revenue and leases and (2) held an open discussion on (a)
technical inquiries and (b) the post-implementation review (PIR) process.
Revenue From Contracts With Customers and Leases: Effective Dates for Certain Entities
The Board discussed comments received on its proposed
ASU, Revenue From Contracts With Customers (Topic 606) and Leases
(Topic 842): Effective Dates for Certain Entities, and decided to extend by
one year the effective dates of the revenue and leasing standards as follows:
- Revenue recognition standard — For all nonpublic entities that have not yet issued their financial statements.
- Leasing standard —
- For private companies and private not-for-profit (NFP) entities.
- For the NFP conduit bond obligate that have not yet issued their financial statements.
Early application will continue to be permitted. The Board directed its staff to
begin drafting a final ASU for a vote by written ballot.
For more information, see the tentative Board decisions on the FASB’s Web site.
Open Discussion
The Board discussed the following technical inquiries:
- Paycheck Protection Program loans — The FASB staff is assisting the AICPA with the “development of illustrations and reasonable expectations of GAAP” to help stakeholders address the accounting for commonly encountered situations related to Paycheck Protection Program loans.
- Disclosure of government assistance — The Board briefly discussed the project on its agenda related to specific disclosures of certain types of government assistance and highlighted existing GAAP in ASC 235 under which disclosure of significant accounting policies is required.
The Board also noted that the FAF board of trustees approved a change to the post-
PIR process under which this process is allowed to be embedded within the
standard-setting process.
For more information, see the tentative Board decisions on the FASB’s Web site.