Private Companies Plead for More Time on Lease Accounting (1)

May 14, 2019, 6:33 PM; Updated: May 14, 2019, 8:14 PM

Private companies need more time to tally on their balance sheets all the storefronts, factories, and forklifts they rent, an American Institute of CPAs panel is arguing to U.S. accounting rulemakers.

In addition to the work required to track down all leases and report their value, the new accounting standard also could force private companies to modify debt covenants, the AICPA’s Technical Issues Committee wrote in a May 14 letter to the Financial Accounting Standards Board. Private companies need a delay until 2021 to work out those details. They also need to finish implementing FASB’s separate, major revenue recognition standard, ...

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