If you’re in the beginning or middle stages of ASC 842 implementation, you may be wondering how to proceed right now. The coronavirus pandemic has hurled economic uncertainty with shared concerns for our health and well-being through astounding obstacles of global shutdowns.
Private companies were already facing a myriad of challenges to reach compliance in time. As of April 8, however, this financial turmoil has spurred FASB to extend the deadline until 2022. However, considering our currently unprecedented complications, the additional layer of a mandated implementation processes has proved paralyzing.
Witnessing that many lessees and lessors may need to modify leases as a result of the international crisis, FASB voted unanimously to delay the effective dates for its standards on lease accounting and revenue recognition for certain entities, due to the difficulties presented by COVID-19. However, the deadline for compliance will still be fast approaching and continuing with your implementation strategy is essential.