The Financial Accounting Standards Board issued a proposed accounting standards update that would delay the effective date for one year for some private companies and nonprofits in applying its leases standard, and for franchisor businesses in applying the revenue recognition standard, because of the impact of the coronavirus pandemic.

Earlier this month, the FASB board members voted remotely to propose the delay to help businesses and nonprofits trying to cope with the far-reaching impact of the pandemic

Under the proposed update, private companies and private not-for-profit organizations would have the option to apply the new standard for fiscal years starting after Dec. 15, 2021, and to interim periods within fiscal years beginning after Dec. 15, 2022. Public not-for-profit organizations that haven’t yet issued financial statements would have the option to apply the standard for fiscal years beginning after Dec. 15, 2019, including interim periods within those fiscal years.

Posted in IFRS