Industry Insights

Staggered Effective Dates for Leases & Financial Instruments

November 2015

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.


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