Private company lease accounting delay requested

The standard took effect for public companies this year.

An AICPA committee has asked FASB to delay the private company implementation date of its new lease accounting standard, citing overload for private company financial statement preparers.

The AICPA Private Companies Practice Section's Technical Issues Committee (TIC) sent a letter recently to Shayne Kuhaneck, FASB's acting technical director, asking for a delay. One of TIC's objectives is to speak on behalf of local and regional firms, although TIC's comments do not necessarily reflect the AICPA's positions.

FASB's new lease accounting standard took effect for public companies at the beginning of this year and is scheduled to be effective for private companies one year later, at the beginning of 2020. TIC's letter notes that FASB's Private Company Decision-Making Framework includes considerations for delaying the private company implementation for more than one year after the public company effective date.

The Associated General Contractors of America sent a letter with a similar request on May 3. FASB considers all unsolicited comment letters as part of its due process and will discuss at an upcoming meeting the request for a delay in the lease accounting standard, John Pappas, FASB's senior manager for communications, said in an email.

TIC wrote that additional time should be given for the lease accounting standard because of the challenges associated with it, coupled with the work private companies also are doing to implement complex new standards for revenue recognition and credit losses.

SPONSORED REPORT

Get your clients ready for tax season

These year-end tax planning strategies address recent tax law changes enacted to help taxpayers deal with the pandemic, such as tax credits for sick leave and family leave and new rules for retirement plan distributions, as well as techniques for putting your clients in the best possible tax position.

RESOURCES

Keeping you informed and prepared amid the coronavirus crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.