The Financial Accounting Standards Board (FASB) has unanimously approved a proposed delay of the effective date to implement new lease accounting standards as defined in ASU 2016-02.
The delay comes as the result of the FASB receiving a letter from the American Institute of CPAs’ (AICPA) Technical Issues Committee requesting a delay. The reasons cited for the delay include the new rule’s complexity and the dates proximity to the roll-out of new revenue recognition rules, which are quite complex on their own.
Before the new date for implementation of the new lease standards is announced, the FASB will issue a proposal for public comment. Once all comments are reviewed, the deadline is expected to begin after December 15, 2020 (or calendar year 2021) for private companies and not-for-profits.
The delay of the new implementation date for the rules, which were passed in January 2016, is expected to be one year. Despite the delay, we encourage our clients to learn and plan for adoption of the new standards. If you have any questions about the new standards, or what this delay will mean, contact your Zinner tax professional.