GENERAL EDITOR Philip W. Miller, CPA Assistant Education Director NSAC 18 Tow Path Lane South Richmond, VA 23221 (804) 339-9577 pwm01@comcast.net
ACCTFAX
ASSISTANT EDITORS Greg Taylor, CPA, CVA, MBA Shareholder Williams & Company (806) 785-5982 gregt@dwilliams.net
By Phil Miller, NSAC Assistant Education Director
Bill Erlenbush, CPA NSAC Education Director (309) 530-7500 nsacdired@gmail.com
EDITOR’S NOTE: Covid-19 is impacting all aspects of our lives. Accounting standards setting did not get a pass! In this issue of ACCTFAX, I will highlight (IN RED) communications from the major standard-setting bodies related to their responses to the pandemic. FASB ISSUES ASU OFFERING LIMITED EFFECTIVE DATE DELAYS ON REVENUE RECOGNITION AND LEASES STANDARDS One-Year Delays Extended to Certain Companies and Organizations On June 3, 2020, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) that grants a one-year effective date delay for certain companies and organizations applying the revenue recognition and leases guidance. Early application continues to be permitted. “The FASB issued the ASU to allow certain companies and organizations who have not yet applied the revenue recognition and leases guidance to delay their implementation by one year,” stated FASB Chairman Russell G. Golden. “We believe the deferral will provide these stakeholders a measure of relief during this unprecedented time.” The ASU permits private companies and not-for-profit organizations that have not yet applied the revenue recognition standard to do so for annual reporting periods beginning after December 15, 2019, and interim reporting periods within annual reporting periods beginning after December 15, 2020. For leases, the ASU provides an effective date 10
deferral to private companies, private not-forprofit organizations, and public not-for-profit organizations that have not yet issued (or made available) their financial statements reflecting the adoption of the guidance. It is intended to provide near-term relief for certain entities for whom the leases adoption is imminent. Under the ASU, private companies and private not-for-profit organizations may apply the new leases standard for fiscal years beginning after December 15, 2021, and to interim periods within fiscal years beginning after December 15, 2022. Public not-for-profit organizations that have not yet issued (or made available to issue) financial statements reflecting the adoption of the leases guidance may apply the standard for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The ASU is available at www.fasb.org. FASB APPROVES NEW STANDARDS AND A PROPOSED EFFECTIVE DATE DELAY AT FINAL MEETING OF CHAIRMAN RUSSELL G. GOLDEN Approves Standards to Improve Convertible Instruments and Contracts in an Entity’s Own Equity, Gifts-in-Kind; Delays Standard on LongDuration Insurance Contracts by One Year Fall 2020 | The Cooperative Accountant
