On April 1, AGC CEO Steve Sandherr requested that the Financial Accounting Standards Board (FASB) enact a one-year delay of the implementation of the leases standard for private companies due to the economic uncertainty caused by the coronavirus. Last year, AGC requested a one-year delay for the new accounting standards for private companies, which will have far reaching implications for how leases are treated on the balance sheets of construction companies, to provide them with additional time to comply after the standard was implemented for larger, public companies in 2019. FASB agreed to the one-year delay, and the standard is currently set to go into effect for private companies on January 1, 2021. As contractors wrestle with lease modifications, bank covenant modifications, surety credit issues, employee layoffs, and critical cash flow issues as a result of COVID-19, it is imperative that focus remain on these pressing issues before dealing with a new accounting standard.
For more information, contact Matt Turkstra at firstname.lastname@example.org.