COVID-19, Tax & Assurance Guidance

FASB Delays Implementation for Revenue Recognition and Leases

Posted on May 21, 2020 by

Dave Van Damme

Dave Van Damme

Share This

Share on facebook
Share on twitter
Share on linkedin
Share on email

The Financial Accounting Standards Board (FASB) voted on Wednesday, May 20 to delay the effective date of the Revenue Recognition Standard by one year for all nonpublic companies who have not issued financial statements yet. FASB had originally proposed a delay only for franchisors, but comment letters received related to the proposed amendment asked FASB to consider an extension to a broader population of companies, namely, all private companies who had not issued their financial statements yet.

The overarching theme of the comment letters was the reality that private companies have had to turn nearly all their attention to addressing their survival through months of decreased or nonexistent operations. In addition, the current remote work environment makes even routine, day-to-day financial accounting tasks extremely challenging. Many private companies need to work with their outside accountants to guide them through the implementation of new and complex standards. The “stay home stay safe” orders and categorization of essential and non-essential businesses has made it difficult to get the assistance needed to adopt the new accounting

In their meeting on Wednesday, the FASB showed their ability to consider the needs of non-public entities. Each member expressed empathy for the position that companies find themselves in, as communicated in many of the comment letters. A final ASU will be issued in the coming weeks that is expected to give nonpublic entities the option to adopt the revenue recognition standard (FASB ASC Topic 606, Revenue From Contracts With Customers) as of the date that is currently in place or to delay implementation for one year.

In this meeting the FASB also affirmed their decision to delay the effective date of the lease accounting standard for non-public companies and not-for-profit entities until fiscal years beginning after December 15, 2021 with early adoption permitted.

FASB Meeting Summary

The above represents our best understanding and interpretation of the material covered as of the date of this post. Things are moving at a rapid pace, and as such, information is subject to change. This information is provided for informational purposes only and is not intended to be a substitute for obtaining accounting, tax, or financial advice from an accountant.




Dave Van Damme


Dave leads the advisory & assurance practice and is well known inside and outside the firm for being both engaged & positive.

Related Insights

Tax & Assurance Guidance

Foreign Tax Withholding: What You Need to Know

Posted on April 26, 2022 by

Rob Cheyne
Making service payments to a foreign person is a common cross-border transaction. U.S. taxpayers need to be aware of the applicability of withholding tax and related reporting requirements to ensure they comply and avoid unintended consequences. A U.S. payor must collect withholding tax and remit it to the IRS in the case it is applicable.

Tax & Assurance Guidance

SALT Relief for Partners and S Corps

Posted on February 23, 2022 by

Miroslav Georgiev
With small businesses supporting nearly 47% of U.S. employees, states have been advocating for pass-through entities, operating partnerships and S corporations that have been harshly impacted by the Tax Cuts and Job Act ‘s state and local taxes deduction limit. Recent legislative activity is finally providing relief for many of these businesses. 

Tax & Assurance Guidance

IRS Provides Relief on K-2 and K-3

Posted on February 17, 2022 by

Margaret Amsden
In an attempt to provide more transparency with regard to reporting of foreign activity and/or information to foreign owners, the IRS came out with two new forms: Schedule K-2 (an addendum to the Schedule K) and Schedule K-3 (an addendum to the Schedule K-1). Learn about the latest K-2 and K-3 reporting requirements issued by the IRS.

Sign up for our newsletters

Get general business and industry-specific news and knowledge straight from our accounting specialists.

The Sound of Automation Podcast

The Sound of Automation Podcast

Industrial automation businesses are the driving force behind Industry 4.0, and Clayton & McKervey is here to help.

Insights & Perspectives

The Sound of Automation: Looking ahead to CSIA 2022

In this episode we talk with Lisa Richter, Director of Industry Outreach and Growth at Control System Integrators Association (CSIA) . Lisa and Bryan look ahead to the CSIA Executive conference taking place in Denver, CO on June 27-30, 2022 and share with listeners what to expect, who will be there, and the discussion panel topics focusing on this years’ theme “The Future of Work”. 

Read More

The Sound of Automation Podcast

Industrial automation businesses are the driving force behind Industry 4.0, and Clayton & McKervey is here to help.

Skip to content