Major Accounting Standards Destined for Delay
Financial preparers caught a break on Wednesday, July 17, when FASB voted to have staff recommend new effective dates of four accounting standards: leases, credit losses, hedging, and long-duration insurance contracts. This is welcomed news after many recent challenging updates, including revenue recognition and financial instruments, which some companies are still working to implement.
The standards are expected to be delayed for a year or more for many entities. This will provide time for essential education before embarking on the significant changes required.
Implementation dates of accounting changes for leases, credit losses, and hedging for public business entities that are SEC filers and certain other companies remain unchanged. Accounting changes for long-duration insurance contracts are expected to be delayed for all entities.
Early adoption is still permitted for any of the four standards.