Boston, MA, October 24, 2019 --(PR.com
)-- The Financial Accounting Standards Board (FASB) officially voted to approve delaying the effective date of the new lease accounting standard for private companies and nonprofit organizations by issuing Accounting Standards Update (ASU) No.2016-02 (2021 calendar year). This action formalizes the proposal that was voted on by the Board in July 2019 and came on the heels of the FASB receiving a letter from the AICPA’s Technical Issues Committee, requesting such a delay. The AICPA pointed to several reasons for such a request, namely, the overlap with the implementation of the new revenue recognition standard and the unexpected complexity in adopting the new lease standard.
The new leases standard will now be effective for private companies and nonprofit organizations for annual reporting periods beginning after December 15, 2020 (2021 calendar year). This represents a one-year deferral of the effective date.
Implementation of the new standard requires a multi stage planning approach that starts with compiling an inventory of all the contracts that meets the revised definition of what constitutes a lease. For many private companies, with limited financial resources, that process and the other complicated decisions and calculations required take much more work than originally thought.
For more information on how iLeasePro can assist private companies in the recordkeeping associated with the new lease standard, please visit our website at https://ileasepro.com
About iLease Management LLC
iLease Management LLC was formed in 2012 and is a technology provider of a Lease Management and Lease Accounting Compliance solution, iLeasePro™. The iLeasePro solution offers private companies comprehensive and portfolio level Lease Management and Lease Accounting features developed to reduce costs, mitigate risks and address the on-going compliance requirements of the changes to lease accounting standards. iLeasePro™ is a scalable, cloud-based solution that firms will use throughout the entire lease lifecycle. Whether leases are currently on spreadsheets or in a solution, iLeasePro’s intuitive functionality allows companies to seamlessly transition its current lease operations from a single threaded process into a fully centralized and consolidated approach without having to realign its resources.