Fourth Quarter 2019 Financial Services Update Highlight – FASB May Tweak Standard to Ease Costs for Private Companies

This article is a selection from a larger fourth-quarter update. For more information on these quarterly updates, please contact a member of the
Elliott Davis Financial Services Group

The FASB would consider amending its newly deferred lease accounting rules for private companies next year if research with public companies reveals areas of more cost-effective reporting solutions, according to remarks made by FASB Chairman Russell Golden at a meeting of the Financial Accounting Foundation (FAF), the body with oversight of FASB and GASB.

FASB staff have been instructed to speak with public companies to determine areas in ASC 842, Leases, that could have had more cost-effective solutions, and to bring an analysis back to the board by March. The FASB’s outreach will also include ongoing dialogue with its Private Company Council, Small Business Advisory Committee, and Financial Accounting Standards Advisory Council about whether the board is reacting to the right type of information. The board will also look at AICPA studies.