SEC Grants More Time on Revenue & Lease Standards in Limited Situations

Changing Piling Up

Sagar Teotia, U.S. Securities and Exchange Commission (SEC) deputy chief accountant, recently announced that entities that only meet the definition of a public business entity (PBE) due to the inclusion of their financial statement in another SEC registrant’s filing would have additional time for the implementation of the new revenue and lease standards—most commonly equity method investees and acquisition targets of public companies. For this limited group of entities, the SEC will not object if those PBEs adopted the revenue standard, Accounting Standards Update (ASU) 2014-09 for annual periods beginning after December 15, 2018, and interim periods beginning after December 15, 2019, and the leases standard (ASU 2016-02) for annual periods beginning after December 15, 2019, and interim periods beginning after December 15, 2020.

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