The FASB has approved a one year deferral for implementation for nonpublic companies. This deferral effectively pushes the new requirement to record assets and liabilities for certain operating leases until 2021 for calendar year financial statements.
As a reminder, the changes to revenue recognition are still effective this year for nonpublic companies. Since the implementation of these new requirements can take significant time and effort, we recommend that companies who have not commenced the process, begin now. Also, the implementation will require more documentation of contracts with customers and potentially new financial statement disclosures.
If your lenders or other financial statement users require GAAP basis financial statements and you have questions about how the new rules will impact you, please call our office to schedule a consultation with one of our CPAs at 205-345-8440.