In response to the coronavirus pandemic, FASB has issued Accounting Standards Update No. 2020-05 delaying implementation of the lease accounting (ASU No. 2016-02) standards for certain entities. 

Private nonprofits may apply the new standard for fiscal years beginning after December 15, 2021, and to interim periods within fiscal years beginning after December 15, 2022.  “Private nonprofits” are defined as nonprofits that have not issued or are conduit obligors for securities that are traded, listed, or quoted on an exchange or over-the-counter market.

FASB hopes this delay will provide relief during this high-pressure economic season caused by COVID-19.