The Financial Accounting Standard Board (FASB) has agreed to extend by one year the effective date of its revenue recognition and lease standards to all nonpublic entities and not-for-profits, that have not yet issued their financial statements. Coronavirus pandemic challenges being experienced by privately held companies and not-for-profits convinced the board that a broader extension was needed in order for these companies to be able to focus resources on the implementation of the above standards.
Final regulations are expected to give privately held entities and not-for-profits the option of adopting the revenue recognition standard on the current implementation date or deferring implementation for one year.
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