The Financial Accounting Standards Board has signaled it plans to extend effective dates for a number of accounting standards that have not yet taken effect, most notably delaying CECL for smaller public companies.
In a public meeting Wednesday, the board determined it will issue a proposal for public comment that will carve out smaller reporting companies as defined by the Securities and Exchange Commission and give them a significantly extended timeline, to 2023, to prepare for the major new standard on credit losses, which requires a “current expected credit losses” approach to recognizing debt-based losses in financial statements. The board also plans to give non-public companies an additional year to prepare for new lease accounting rules as well as rules on hedging, both of which public companies are already required to follow.
