Credit Losses and Lease Accounting Effective Date Delay Likely
New accounting rules related to credit losses (CECL), leases and hedging standards and their adoption requirements have created a considerable burden for private companies and non-profits to comply with the new rules. However, earlier this month the Financial Accounting Standards Board approved its proposal to delay these accounting standards to give management more time to successfully implement these changes.
The following chart illustrates the likely delayed effective dates for calendar-year-end companies:
Final Accounting Standards Updates are expected to be released by FASB in mid-November confirming the extended compliance dates. Doeren Mayhew will keep you up-to-date on the effective date delays as more information is released. In the meantime, should you have any questions regarding these accounting standards please contact one of our CPAs and advisors.