Lease accounting effective date deferred for federal entities

By Ken Tysiac

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.

Where to find January’s flipbook issue

Starting this month, all Association magazines — the Journal of Accountancy, The Tax Adviser, and FM magazine (coming in February) — are completely digital. Read more about the change and get tips on how to access the new flipbook digital issues.

SPONSORED REPORT

Get your clients ready for tax season

Upon its enactment in March, the American Rescue Plan Act (ARPA) introduced many new tax changes, some of which retroactively affected 2020 returns. Making the right moves now can help you mitigate any surprises heading into 2022.