In July, FASB met to discuss several outstanding items, including the effective date for lease accounting for private companies and nonprofits.
After deliberation and recommendations, the Board decided to postpone the effective date for private companies and nonprofits for 12 months pending a public comment period. If there is
no opposition to the proposed lease accounting delay, the new ASC 842 effective date for private companies will be January 1, 2021.
It is expected that there will not be any opposition to postponing the lease accounting effective date. Many considered the postponement necessary so companies can use the extra time to learn from the experiences of public companies so they could implement the new standard effectively and efficiently.