Defining Issues  |  November 2019

FASB defers the effective date for credit losses, derivatives and leasing

The FASB has issued ASU 2019-10, which amends the effective dates for three major accounting standards. The ASU defers the effective dates for the credit losses, derivatives and leases standards for certain companies.

Applicability

ASU 2019-10

  • All companies

Key impacts

Credit losses

  • Deferral for SEC filers that are eligible to be ‘smaller reporting companies’, non-SEC filers and all other companies, including not-for-profit companies and employee benefit plans.
  • For calendar-year end companies that are eligible for the deferral, the effective date is January 1, 2023. 
  • A company’s determination about whether it is a eligible to be a ‘smaller reporting company’ is based on its most recent filing determination in accordance with SEC regulation as of November 15, 2019.

Derivatives

  • One-year deferral for companies that are not public business entities.
  • For calendar-year end companies that are eligible for the deferral, the effective date is January 1, 2021. 

Leases 

  • One-year deferral for companies that are not public business entities.
  • The deferral excludes not-for-profit entities that have issued, or are conduit bond obligors for securities that are traded, listed or quoted on an exchange or an over-the-counter market, and employee benefit plans that file or furnish financial statements with or to the SEC.
  • For calendar-year end companies that are eligible for the deferral, the effective date is January 1, 2021. 

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