FASB Proposes Limited Effective-Date Delays for Guidance on Revenue and Leases
FASB Proposes Limited Effective-Date Delays for Guidance on Revenue and
April 21, 2020
The FASB has issued a proposed Accounting Standards Update (ASU), Effective Dates
for Certain Entities, that would grant a one-year effective-date delay for
certain stakeholders applying the guidance on leases and revenue recognition. This
proposal is being issued in response to the COVID-19 pandemic.
The proposal states:
The proposed deferral for Revenue is limited to franchisors that are not
public business entities because of a specific issue related to the
application of Revenue to initial franchise fees. The proposed deferral for
Leases is limited to (1) entities for whom Leases is currently effective and
that have rapidly approaching year-end dates and (2) entities for whom the
effective date for Leases is imminent.
Comments on the proposed ASU are due by May 6, 2020. For more
information, see the press release on the FASB’s Web site.