On Wednesday, May 20th, the Financial Accounting Standards Board (FASB) voted to delay the implementation of the new revenue recognition standards, FASB Accounting Standards Codification (ASC) Topic 606, Revenue From Contracts With Customers, for one year for all entities that have not already implemented the standard.
FASB’s original proposal had only granted this additional time to franchisors, but based on responses to the original proposal FASB determined that under the current conditions brought on by the coronavirus it was appropriate to grant all entities this additional time to relieve the additional accounting burden created by implementing the standard. Implementation of this standard will now be required for calendar 2020 or fiscal year 2021 financial statements. Early implementation of the standard is permitted.
FASB also voted to approve the delay of ASC Topic 842, Leases, for an additional year for private companies and not-for-profit organizations for an additional year. Implementation of this standard will now be required for calendar 2022 or fiscal year 2023 financial statements. Early implementation of the standard is permitted.
Please contact us for further discussion on how this impacts your organization.Categories: Audit & Accounting, COVID-19 Resources