Oct 18, 2019, 12:57 PM
(From Accounting Today) The Financial Accounting Standards Board recently voted to approve proposals to delay the effective dates of its leases, credit losses, hedging and long-duration insurance contract standards. The move comes in response to complaints from various constituents about the difficulties of implementing so many new standards, particularly after the far-reaching revenue recognition standard took effect. The hedging and leasing standards have already taken effect for public companies since January 2019, but the effective dates for private companies and nonprofits will now be moved out to January 2021.
The delay is intended to allow companies and nonprofit organizations ample time to deal with the complexities of the transition to the long-duration insurance standard. “It's imperative that companies spend the time now to identify the right project management, staff involvement and technology to avoid any unforeseen issues as well as the increased costs of implementation caused by waiting until the last moment,” said Mike Stevenson, partner and leader of the Accounting and Reporting Advisory Group at BDO USA, in a statement.
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