FASB Decides to Extend Effective Date of Revenue Recognition and Leases Standards for Certain Entities

On May 21, 2020, the Financial Accounting Standards Board (FASB) met and voted to extend the effective dates of Topic 606, Revenue from Contracts with Customers, and Topic 842, Leases, for certain entities. It has directed the staff to draft a final Accounting Standards Update (ASU) for vote by written ballot. In addition, the FASB clarified that a public not-for-profit entity that has issued financial information, rather than financial statements, that reflects adoption of Topic 842 is eligible to apply the deferral.

In this Flash Report, we summarize the key areas of the FASB’s recent standard extension and outlines what changes organizations should look forward to.