FASB Issues ASU Providing Limited Effective-Date Delays for Guidance on Revenue and Leases

The FASB has issued Accounting Standards Update (ASU) No. 2020-05, Effective Dates for Certain Entities, which grants a one-year effective-date delay for certain stakeholders applying the guidance on leases and revenue recognition.

The ASU allows:

• “Private companies and not-for-profit organizations that have not yet applied the revenue recognition standard to do so for annual reporting periods beginning after December 15, 2019, and interim reporting periods within annual reporting periods beginning after December 15, 2020.”
• “Private companies and private not-for-profit organizations [to] apply the new leases standard for fiscal years beginning after December 15, 2021, and to interim periods within fiscal years beginning after December 15, 2022. Public not-for-profit organizations that have not yet issued (or made available to issue) financial statements reflecting the adoption of the leases guidance may apply the standard for fiscal years beginning after December 15, 2019, including interim periods within those fiscal year.”

For more information, see Deloitte's Heads Up newsletter as well as the press release on the FASB’s Web site.