This morning, the Financial Accounting Standards Board (FASB) voted to move forward with a one-year deferral of the effective date for ASC 842, Leases, for all private companies and not-for-profit organizations (including conduit debt obligors) so that such entities can appropriately direct resources during this COVID-19 pandemic. Once approved, this delayed effective date would apply to any entity that has not issued financials statements.
The FASB also voted to move forward with a one-year deferral of the effective date of ASC 606, Revenue from Contracts with Customers, for private company franchisors in order to look at practical expedients around the complexity of initial franchise fees and allocation of up-front revenue. Once approved, this delayed effective date would apply to any nonpublic entity that has not issued financials statements.
The FASB Board Meeting can be viewed here: