FASB Amends the Effective Dates for the CECL, Hedging, Leases and Insurance Standards

The FASB amends the effective dates for the CECL, Hedging, Leases and Insurance Standards, as follows, which are consistent with the related proposed ASUs:

– ASU No. 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (Insurance);

– ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (Hedging);

– ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (CECL); and

– ASU No. 2016-02, Leases (Topic 842) (Leases).

 The related ASUs are expected to be issued in mid-November. The following is how the FASB amends the effective dates for the related ASUs:

The amendments to the Insurance Standard amend the effective dates to be:

(a) For public business entities that meet the definition of a U.S. Securities and Exchange Commission (SEC) filer, excluding eligible smaller reporting companies (SRCs), the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years.

(b) For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

The amendments to the Hedging Standard amend the effective dates as follows:

 The amendments are effective for entities other than public business entities for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early application is allowed.

The amendments to the CECL Standard amend the effective dates to be:

(a) Public business entities that meet the definition of an SEC filer, excluding entities eligible to be SRCs as defined by the SEC, for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.

(b) All other entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.

The amendments to the Leases Standard amend the effective dates as follows:

Leases would be effective for all other entities fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early application would continue to be allowed.

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