On April 8, 2020, the Financial Accounting Standards Board (FASB) proposed delaying, for certain entities, the effective dates of its accounting standards for revenue recognition and lease accounting. Without question, the speed, severity and impact of the COVID-19 global pandemic has resulted in historic shifts in the economy and among organizations worldwide. The FASB provided a 15-day comment period for these updates, which are expected to be ratified quickly by the board.
This Flash Report highlights the struggles that companies likely are encountering to implement complex and impactful new accounting standards after the unexpected COVID-19-related challenges arose.