There’s some welcome news for businesses that use GAAP (Generally Accepted Accounting Principles) for their financial statements. There is now a year delay on implementing fairly cumbersome new lease accounting standards.
The Financial Accounting Standards Board (FASB) voted last month to delay ASC 842 Leases, a standard requiring the capitalization and debt of virtually all leases on the balance sheet. The new standard was supposed to take affect for private businesses and other non-public entities for fiscal years starting after Dec. 15, 2019. Now the new standard will take affect for fiscal years starting after Dec. 15, 2020.