FASB defers the effective date for long-duration contracts
The FASB has issued ASU 2019-09, which amends the effective date for long-duration contracts: targeted improvements. The final ASU defers the effective date for all entities.
All companies in the scope of ASU 2018-12 on long-duration contracts
For calendar-year-end reporting companies in the scope of the ASU on long-duration contracts:
- For SEC filers, excluding those eligible to be ‘smaller reporting companies’, the effective date is January 1, 2022.
- For SEC filers that are eligible to be ‘smaller reporting companies’, non-SEC filers and all other entities in scope, the effective date is January 1, 2024.
- A company’s determination about whether it is eligible to be a ‘smaller reporting company’ is based on its most recent filing determination in accordance with SEC regulations as of November 15, 2019.
KPMG's Handbook: Long-duration contracts: Targeted improvements