FASB finalizes scope and effective date of the credit losses standard
Defining Issues | November 2018
In ASU 2018-19, the FASB clarifies the scope of the standard and the effective date for non-public business entities.
The FASB has issued ASU 2018-19 related to credit losses. The amendment addresses the effective date for nonpublic business entities and whether operating lease receivables are in scope.
Applicability
- Companies with operating lease receivables accounted for under Topic 842
- Non-public business entities
Key Impacts:
- Operating lease receivables are not in the scope of the credit losses standard
- Effective date for non-public business entities is annual and interim periods for fiscal years beginning after December 15, 2021
Relevant dates
Mandatory effective dates and early adoption provisions:
