FASB Delays Effective Dates for CECL, Leases, and Hedging Standards
FASB issued two Accounting Standards Updates finalizing the delays in effective dates for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.
Accounting Standards Update No. 2019-10 on Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842).This update finalizes various effective date delays for private companies, not-for-profit organizations, and certain smaller reporting companies applying the credit losses (CECL), leases, and hedging standards. There is no change in effective dates for public business entities for standards on hedging and leases. Also, for the Credit Losses Standard, there is no change in the effective date for public business entities that are SEC filers. The table below details the revised effective dates.
Accounting Standards Update No. 2019-09 on Financial Services—Insurance (Topic 944).This update finalizes the delays in the effective dates for the standard for all insurance companies that issue long-duration contracts, such as life insurance and annuities. The table below details the revised effective dates.
Revised Effective Dates
|
Standard |
Public Business Entities |
Private and All Others |
|
|
SEC Filers |
All other Public Business Entities |
||
|
Hedging |
January 2019 |
January 2019 |
January 2021 |
|
Leases |
January 2019 |
January 2019 |
January 2021 |
|
CECL |
January 2020 (Excluding smaller reporting companies, as defined by SEC) |
January 2023 (Includes smaller reporting companies, as defined by SEC) |
January 2023 |
|
Insurance |
January 2022 (excludes smaller reporting companies, as defined by SEC) |
January 2024 (Includes smaller reporting companies, as defined by SEC) |
January 2024 |
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Keywords: Americas, US, Banking, Accounting, Insurance, Accounting Standards Update, CECL, Derivatives and Hedging, Leases, IFRS 9, IFRS 16, IFRS 17, Reporting, SEC, FASB
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