When is ASC 842 effective for private companies?

COVID-19 has impacted many areas of commerce very few predicted. Lease accounting is no exception. 

The date of mandatory adoption for ASC 842 is now for fiscal years beginning after Dec. 15, 2021, and interim periods within fiscal years beginning after Dec. 15, 2022.

The FASB issued ASU 2020-05 in June 2020 allowing certain companies and organizations who have not yet applied ASC 842 the option to delay their implementation by one year. FASB Chairman Russell Golden noted in a statement “We believe the deferral will provide these stakeholders a measure of relief during this unprecedented time.”

Early adoption of each standard will still be accepted.