Solidified Implementation: Deadlines have Arrived!
As a result of implementation challenges faced by companies adopting certain major new accounting standards, the FASB issued two Accounting Standards Updates (ASUs) to defer the effective dates of four ASU’s:
- 2019-09, Financial Services—Insurance: Effective Date
- 2019-10, Financial Instruments — Credit Losses, Derivatives and Hedging, and Leases: Effective Dates
For nonpublic entities, the new effective dates are as follows:
This is a welcome relief. On another exciting note, the FASB established a new philosophy to stagger effective dates for major ASUs using a two-bucket approach. Larger public SEC filers are in bucket one and all other entities are in bucket two. Under this philosophy, private companies are expected to have at least two years after the effective date for large public SEC filers to implement major new standards. This new approach was considered when revising the effective dates for the above standards.