On Wednesday, the Financial Accounting Standards Board (FASB) announced a broad extension of the revenue recognition standard effective date. A recent article from the Journal of Accountancy examines the reasoning behind the board’s decision.
Prior to this final vote, FASB released a more limited proposal that would adjust the effective date of the revenue recognition standard just for non-public franchisors. During the comment period, it became clear that all nonpublic entities desired an adjustment to the effective date. The coronavirus pandemic has created challenging situations for many, so the broader extension is welcomed by many.
Additionally, on Wednesday FASB affirmed another proposed change—and amendment to the effective date of the lease accounting standard for both private companies and nonprofits. The new effective date
For full details, click here to read the article from the Journal of Accountancy.