The Financial Accounting Standards Board (FASB) updated the effective dates for several major Accounting Standards Update (ASUs), including for leases, credit losses and hedging by issuing ASU 2019-10 recently.

Below is an overview:

Leases (Topic 842) – Effective dates are as follows (early application is allowed):

• For public business entities, non-profit entities that have issued or is a conduit bond obligor for securities that are traded, listed or quoted on an exchange or an over-the counter market, and employee benefit plans that file or furnish financial statements with or to the U.S. Securities and Exchange Commission, fiscal years beginning after Dec. 15, 2018, including interim periods within those fiscal years.
• For all other entities, fiscal years beginning after Dec. 15, 2020, and interim periods within fiscal years beginning after Dec. 15, 2021.

Credit Losses (Topic 326) – Mandatory effective dates are as follows:

• For public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding entities eligible to be defined as smaller reporting companies, fiscal years beginning after Dec. 15, 2019, including interim periods within those fiscal years.
• For all other entities effective for fiscal years beginning after Dec. 15, 2022, including interim periods within those fiscal years.

Hedging (Topic 815) – Effective dates are as follows (early application is allowed):

• For public business entities fiscal years beginning after Dec. 15, 2018, including interim periods within those fiscal years. These dates didn’t change as the item was already effective for these entities.
• For all other entities fiscal years beginning after Dec. 15, 2019, and interim periods within fiscal years beginning after December 31, 2020.

These updated effective dates allow companies to evaluate its impact and effectively implement the new accounting standards to ensure compliance in their organization. To learn more or to obtain assistance, contact us today.