ASU 2019-10 : Amendments to Subtopic 842-10

Posted in Column, News

The FASB has issued ASU 2019-10, which amends the effective dates for three major accounting standards.  The ASU defers the effective dates for the credit losses, derivatives and leases standards for certain companies.

Please find the accounting update regarding leases for nonpublic entity.

Amendments to Subtopic 842-10

  1. Amend paragraphs 842-10-65-1 and 842-10-65-4 and their related headings

and amend pending content transition date for all paragraphs that link to paragraphs 842-10-65-1 and 842-10-65-4 as follows:

Leases—Overall

Transition and Open Effective Date Information

> Transition Related to Accounting Standards Updates No. 2016-02, Leases (Topic 842), No. 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, No. 2018-10, Codification Improvements to Topic 842, Leases, No. 2018-11, Leases (Topic 842): Targeted Improvements, No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors, and No. 2019-01, Leases (Topic 842): Codification Improvements, and No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases  (Topic 842): Effective Dates

842-10-65-1 The following represents the transition and effective date information related to Accounting Standards Updates No. 2016-02, Leases (Topic 842), No. 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, No. 2018-10, Codification Improvements to Topic 842, Leases, No. 2018-11, Leases (Topic 842): Targeted Improvements, No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors, and No. 2019-01, Leases (Topic 842): Codification Improvements, and No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates: [Note: See paragraph 842-10-S65-1 for an SEC Staff Announcement on transition related to Update 2016-02.]

  1. A public business entity, a not-for-profit entity that has issued or is a
    conduit bond obligor for securities that are traded, listed, or quoted on an exchange or an over-the-counter market, and an employee benefit plan that files or furnishes financial statements with or to the U.S. Securities and Exchange Commission shall apply the pending content that links to this paragraph for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Earlier application is permitted.
  2. All other entities shall apply the pending content that links to this paragraph for financial statements issued for fiscal years beginning after December 15, 2020 2019, and interim periods within fiscal years beginning after December 15, 2021 2020. Earlier application is permitted.