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Guidance effective for calendar year-end nonpublic companies
Publication date: 30 Aug 2023
us FASB standards effective dates
The FASB’s recently released standards are grouped below by effective date — those that are effective now and those that are effective in subsequent fiscal years -- for calendar year-end nonpublic companies (that is, companies that are neither public, nor meet the definition of a public business entity). Since the issuance of ASU 2013-12, Definition of a Public Business Entity—An Addition to the Master Glossary, the term public business entity (PBE) has been used to establish effective dates and to scale disclosure requirements for new ASUs. Therefore, all companies need to consider whether or not they meet the definition of a PBE when adopting new standards. While the guidance generally refers to PBEs, and sometimes the effective date for PBEs excludes smaller reporting companies (as defined by the SEC), we have used the “short hand” of “public” and “nonpublic” to refer to the earlier and later effective date buckets.
Guidance effective in 2023 for calendar year-end nonpublic companies
(a) Effective through December 31, 2024, as amended by 2022-06
Guidance effective after 2023 for calendar year-end nonpublic companies
Guidance effective in 2023 for calendar year-end nonpublic companies
ASU No. | Standard name | Effective date | Early adoptable | PwC resources |
|---|---|---|---|---|
Reference Rate Reform (Topic 848): Scope | Upon issuance (January 7, 2021) through December 31, 2024, as amended by ASU 2022-06 | Not applicable | ||
Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 | Upon issuance (December 21, 2022) through December 31, 2024 | Not applicable | ||
Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments | As amended by ASU 2019-10, fiscal years beginning after December 15, 2022, including interim periods within those fiscal years | Yes | ||
Codification Improvements to Topic 326, Financial Instruments—Credit Losses | The effective date is the same as the effective date in ASU 2016-13 | Not applicable | ||
Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments | Topics 1, 2 and 5 (Amendments to Topic 326):
| Topics 1, 2 and 5: Yes if ASU 2016-13 has been adopted | ||
Financial Instruments—Credit Losses (Topic 326) Targeted Transition Relief | For entities that have not yet adopted ASU 2016-13, the same as ASU 2016-13 | Early adoption is permitted if ASU 2016-13 has already been adopted | ||
Codification Improvements to Topic 326, Financial Instruments—Credit Losses | For entities that have not yet adopted ASU 2016-13, the same as ASU 2016-13 | Early adoption is permitted if ASU 2016-13 has already been adopted | ||
Intangibles—Goodwill and Other (Topic 350) | As amended by ASU 2019-10, annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2022 | Yes, for any goodwill impairment tests performed after January 1, 2017 | ||
Financial Instruments—Leases (Topic 842): Effective Dates | Credit losses & goodwill impairment: Fiscal years beginning after December 15, 2022, including interim periods within those fiscal years | Not applicable | ||
Codification Improvements to Financial Instruments | Issues 6 and 7:For entities that have not yet adopted the amendments related to ASU 2016-13, the same as ASU 2016-13 | |||
Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures | For entities that have adopted ASU 2016-13: Fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For entities that have not yet adopted the amendments related to ASU 2016-13, the same as ASU 2016-13 | Early adoption is permitted if ASU 2016-13 has already been adopted | ||
Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations | Fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. | Yes |
Guidance effective after 2023 for calendar year-end nonpublic companies
ASU No. | Standard name | Effective date | Early adoptable | PwC resources |
Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts | As amended by ASU 2020-11, fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025 | Yes | ||
Financial Services—Insurance (Topic 944): Effective Date | As amended by ASU 2020-11, effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025 | Not applicable | ||
Financial Services—Insurance (Topic 944): Effective Date and Early Application | Effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025 | Yes - early transition relief available | ||
Financial Services—Insurance (Topic 944): Transition for Sold Contracts | Effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025 | Yes - early transition relief available | ||
Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging —Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity | Fiscal years beginning after December 15, 2023, and interim periods within those fiscal years | Yes, but only as of the beginning of a fiscal year beginning after December 15, 2020. | ||
Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers | Fiscal years beginning after December 15, 2023, and interim periods within those fiscal years | Yes | ||
Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method | Fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. | Early adoption is permitted if ASU 2017-12 has already been adopted for the corresponding period. | ||
Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions | Fiscal years beginning after December 15, 2024, and interim periods within those fiscal years | Yes | ||
Leases (Topic 842): Common Control Arrangements | Fiscal years beginning after December 15, 2023, and interim periods within those fiscal years | Yes | ||
Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method | Fiscal years beginning after December 15, 2024, and interim periods within those fiscal years | Yes | ||
Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement | Effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. | Early adoption is permitted in any interim or annual period in which financial statements have not yet been issued (or made available for issuance), either prospectively or retrospectively. |
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