Federal government entities will have extra time to implement a new lease accounting standard after the Federal Accounting Standards Advisory Board (FASAB) announced Friday that it is delaying the standard’s effective date.
FASAB issued Statement of Federal Financial Accounting Standards (SFFAS) 58, Deferral of the Effective Date of SFFAS 54, Leases. SFFAS 58 defers the lease accounting standard’s effective date to reporting periods beginning after Sept. 30, 2023. Early implementation is not permitted.
“In learning more about implementation challenges faced by reporting entities, particularly with respect to developing and implementing systems and data requirements, the board agreed that providing additional time to complete ongoing implementation preparation activities was appropriate,” FASAB Chair George Scott said in a news release.
FASAB’s Accounting and Auditing Policy Committee will issue a technical release to address a broad range of implementation issues, and the board also is considering omnibus amendment issues that could provide minor technical clarifications related to the implementation of SFFAS 54.
— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.