Staggered Effective Dates for Leases & Financial Instruments
One of the lessons the Financial Accounting Standards Board (FASB) learned from the revenue recognition project was to set the effective date close to the issuance date for a final standard. FASB is expected to release final standards on leases and financial instruments—classification and measurement in the fourth quarter of 2015 as well as a final standard on financial instruments—credit impairment in the first quarter of 2016; the board recently met to consider the effective dates. FASB considered a “big bang” approach and several options for sequential implementation, taking into account the efforts of adopting the revenue recognition standard. In the end, FASB settled on a staggered approach with options to early adopt.