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Guidance effective for calendar year-end public companies
Publication date: 01 Nov 2020
us FASB standards effective dates
The FASB’s recently released standards are grouped below by effective date - those that are effective in 2020 for calendar year-end public companies, and those that are effective in subsequent fiscal years. 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 2020 for calendar year-end public companies
Guidance effective after 2020 for calendar year-end public companies
(a) Effective in 2020 for SEC filers other than SRCs; effective in 2023 for all other companies, including SRCs.
(b) Effective in 2022 for SEC filers other than SRCs; effective in 2024 for all other companies, including SRCs.
Guidance effective in 2020 for calendar year-end public companies
ASU No. | Standard name | Effective date | Early adoptable | PwC resources |
Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments | SEC filers, excluding SRCs: As amended by ASU 2019-10, fiscal years beginning after December 15, 2019, including interim periods within those fiscal years SRCs: As amended by ASU 2019-10, fiscal years beginning after December 15, 2022, including interim periods within those fiscal years | Yes | ||
Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans | Fiscal years ending after December 15, 2020 | Yes | ||
Codification Improvements to Topic 326, Financial Instruments—Credit Losses | The same as the effective date for ASU 2016-13 | Not applicable | ||
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 For entities that have adopted ASU 2016-13, fiscal years beginning after December 15, 2019, including interim periods within those fiscal years | 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 For entities that have adopted ASU 2016-13, fiscal years beginning after December 15, 2019, including interim periods within those fiscal years | Early adoption is permitted if ASU 2016-13 has already been adopted | ||
Intangibles—Goodwill and Other (Topic 350) | SEC filers, excluding SRCs: As amended by ASU 2019-10, annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019 SRCs: 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 | ||
Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement | Fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 | Yes | ||
Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract | Fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 | Yes | ||
Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities | Fiscal years beginning after December 15, 2019, and interim periods within those fiscal years | Yes | ||
Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 | Fiscal years beginning after December 15, 2019, and interim periods within those fiscal years | Yes, but no earlier than the adoption date of Topic 606 | ||
Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350) | Fiscal years beginning after December 15, 2019, and interim periods within those fiscal years | Yes | ||
Not-for-Profit Entities (Topic 958): Updating the Definition of Collections | Fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020 | Yes | ||
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):
Topic 3 (Amendments to Topic 815):
Topic 4 (Amendments to Topic 825):
| Topics 1, 2 and 5: Yes if ASU 2016-13 has been adopted Topic 3: Yes if ASU 2017-12 has been adopted Topic 4: Yes if ASU 2016-01 has been adopted | ||
Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements—Share-Based Consideration Payable to a Customer | Effective in fiscal years beginning after December 15, 2019, and interim periods within those fiscal years | Yes, but only after adoption of ASU 2018-07 | ||
Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates | Credit losses & goodwill impairment: SEC filers, excluding SRCs: fiscal years beginning after December 15, 2019, including interim periods within those fiscal years SRCs: fiscal years beginning after December 15, 2022, including interim periods within those fiscal years | Not applicable | ||
Financial Instruments—Credit Losses (Topic 326) and Leases (Topic 842) | Upon issuance | Not applicable | ||
Codification Improvements to Financial Instruments | Issues 1,2,4 and 5:
Issue 3:
Issues 6 and 7:
| Not applicable | ||
Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting | Upon issuance (March 12, 2020) through December 31, 2022 | Not applicable | ||
ASU 2020-05 | Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities | Upon issuance (June 3, 2020) Defers the effective date of Topic 842 to fiscal years beginning after December 15, 2019 for public not-for-profit entities that have not yet issued financial statements (or made available for issuance) as of June 3, 2020 | Not applicable |
Guidance effective after 2020 for calendar year-end public 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 | SEC filers, excluding SRCs: As amended by ASU 2020-11, fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022 SRCs: 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 | SEC filers, excluding SRCs: As amended by ASU 2020-11, fiscal years beginning after December 15, 2022, and interim periods within those fiscal years SRCs: As amended by ASU 2020-11, fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025 | Not applicable | ||
ASU 2020-11 | Financial Services—Insurance (Topic 944): Effective Date and Early Application | SEC filers, excluding SRCs: Fiscal years beginning after December 15, 2022, and interim periods within those fiscal years SRCs: Fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025 | Yes - early transition relief available | |
Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes | Fiscal years beginning after December 15, 2020, and interim periods within those fiscal years | Yes | ||
Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) | Fiscal years beginning after December 15, 2020, and interim periods within those fiscal years | Yes | ||
ASU 2020-06 | 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 | SEC filers, excluding SRCs: Fiscal years beginning after December 15, 2021, and interim periods within those fiscal years.
SRCs: 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. | |
Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets | Fiscal years beginning after June 15, 2021, and interim periods within annual periods beginning after June 15, 2022 | Yes | ||
ASU 2020-08 | Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs | Fiscal years beginning after December 15, 2020, and interim periods within those fiscal years | No | |
ASU 2020-09 | Debt (Topic 470): Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762 | Effective on January 4, 2021, pursuant to SEC Release No. 33-10762 | Yes | |
ASU 2020-10 | Codification Improvements | Fiscal years beginning after December 15, 2020, and interim periods within those fiscal years | Yes |
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