FASB Sets Dates for New Lease Accounting Guidelines

During a meeting on November 11, 2015, the Financial Accounting Standards Board (FASB) decided that the new leases standard would be effective for public business entities for annual and interim periods beginning after 15 December 2018 (for calendar year end companies this means their 12/31/19 financial statements have to reflect the new rules). For nonpublic business entities, the effective date would be annual periods beginning after 15 December 2019, and interim periods the following year. Early adoption would be permitted for all entities.

With these decisions, the FASB completed re-deliberations and in a 6 to 1 vote directed its staff to proceed with the final standard, which it plans to issue in early 2016. The remaining steps are for the staff to complete the final draft that is called the ballot draft. It will be subject to a formal vote in early 2016 but that is more or less perfunctory since 6 Board members agree and only one will dissent.