The Financial Accounting Standards Board (FASB) voted last week to propose a delay of the effective dates for three major accounting standards for private companies, nonprofits and small reporting companies. One of these proposed changes would provide more time for nonprofit organizations to implement the lease accounting standard, now proposed to take effect in January 2021 for those with a December 31 year-end.
FASB acknowledged the lease accounting standard has been difficult for some organizations to implement given the challenges inherent in gathering the required data and dedicating resources for the transition. With more time to implement, FASB hopes organizations will have the opportunity to improve internal processes and procedures during implementation and take advantage of valuable lessons learned from early adopters.
GRF will monitor FASB’s deliberations and keep our clients informed of any developments. If you have any questions about the lease accounting standard, please contact any member of GRF’s audit team at 301-951-9090.