New Leasing Standard Deadline for Private Companies, Nonprofits Approaching
In early 2016, the FASB issued ASU 2016-02, Leases (ASC 842) and set an effective date of January 1, 2019 for public companies. However, since the original issuance of ASU 2016-02, the Board has voted to defer the effective date of the new leasing standard for private companies and certain nonprofit entities.
Revised Leasing Standard Effective Dates
- The new leasing standard for private companies and private nonprofits will be effective for fiscal years beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022.
- For public nonprofits, the leasing standard will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.
- Early adoption is still permitted.
Considering the balance sheet focus of ASC 842, entities are advised to proactively begin preparing for the adoption on January 1, 2022 as implementation can take longer than expected.
Previous ASC 842 Updates
- The New Leasing Standard Is Delayed, But the Time to Prepare is Now
- Leasing and Revenue Recognition Standards Delayed for Some Private Companies
Connect with a Member of MFA’s Technical Accounting Advisory Team today to discuss compliance with the leasing standard and the varying impacts to your business.
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