FASB Tentatively Decides to Extend the Implementation Date of Lease Standard

The Financial Accounting Standards Board (FASB) voted to propose delaying the implementation date for Accounting Standards Update 2016-02, Leases (Topic 842) (ASU 2016-02) for not-for-profit organizations without publicly traded conduit debt. ASU 2016-02 changes the accounting for leases primarily by adding operating leases to the balance sheet.

The new implementation date for most not-for-profits will be fiscal years beginning January 1, 2021, or later (that is, calendar year ending 2021 or fiscal year ending 2022). The implementation date for not-for-profit organizations that have publicly traded conduit debt will remain unchanged (that is, calendar year ending 2019 or fiscal year ending 2020). Early adoption is permitted.

The decision is tentative pending approval of the official Accounting Standards Update. Please feel free to contact us if you would like further details.

The following is a summary of the newly proposed implementation dates for ASU 2016-02:

Organization Type Calendar Fiscal Year End Non-calendar Fiscal Year End
NFP without publicly traded conduit debt 2021 2022
NFP with publicly traded conduit debt 2019 2020

 

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