We previously reported that the FASB had proposed a one-year delay in implementing ASC 842 for private companies and not-for-profit organizations (that is, those that don't have publicly traded stock or bonds). The original timeline was implementation for fiscal years starting after Dec. 15, 2019, with implementation for interim reports not required until the following year. In other words, quarterly reports could be on FAS 13 (ASC 840) for fiscal 2020, but the year end report would need to use ASC 842. The FASB put out the exposure draft in July. After completing due process, the Board officially approved the one-year delay, releasing Accounting Standards Update (ASU) 2019-10 on Nov. 15. ASC 842 compliance is now required for fiscal 2021.
Our EZLease lease accounting software has always allowed specifying any date for transition to the new standard, so it is ready for the revised standard now. It also still provides full FAS 13 compliance, so even if you have another year to make the transition, EZLease can make your FAS 13 reporting easier.