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Guidance effective for calendar year-end public companies
Publication date: 04 Oct 2021
us FASB standards effective dates
The FASB’s recently released standards are grouped below by effective date - those that are effective in 2021 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 2021 for calendar year-end public companies
Guidance effective after 2021 for calendar year-end public companies
(a) Effective in 2023 for SRCs
(b) Effective in 2023 for SEC filers other than SRCs; effective in 2025 for all other companies, including SRCs.
(c) Effective in 2022 for SEC filers other than SRCs; effective in 2024 for all other companies, including SRCs.
Guidance effective in 2021 for calendar year-end public companies
ASU No. | Standard name | Effective date | Early adoptable | PwC resources |
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 | ||
Codification Improvements to Financial Instruments | Not applicable | |||
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 | ||
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 | ||
Codification Improvements | Fiscal years beginning after December 15, 2020, and interim periods within those fiscal years | Yes | ||
Reference Rate Reform (Topic 848): Scope | Upon issuance (January 7, 2021) through December 31, 2022 | Not applicable | ||
Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946)
| Upon issuance (August 2021)
| Not applicable
|
Guidance effective after 2021 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 | SRCs: As amended by ASU 2019-10, fiscal years beginning after December 15, 2022, including interim periods within those fiscal years | Yes | ||
Intangibles—Goodwill and Other (Topic 350) | 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 | ||
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 | ||
Codification Improvements to Topic 326, Financial Instruments—Credit Losses | SRCs: The same effective date as 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: Yes if ASU 2016-13 has been adopted | |||
Financial Instruments—Credit Losses (Topic 326) Targeted Transition Relief | SRCs: The same effective date as ASU 2016-13. | Early adoption is permitted if ASU 2016-13 has already been adopted | ||
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 | ||
Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates | SRCs: Fiscal years beginning after December 15, 2022, including interim periods within those fiscal years | Not applicable | ||
Codification Improvements to Topic 326, Financial Instruments—Credit Losses | SRCs: The same effective date as ASU 2016-13. | Early adoption is permitted if ASU 2016-13 has already been adopted | ||
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 | ||
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 | ||
Earnings Per Share (Topic 260), Debt— Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40) | Fiscal years beginning after December 15, 2021, and interim periods within those fiscal years | Yes | ||
Leases (Topic 842) Lessors—Certain Leases with Variable Lease Payments | The amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. For entities that have not already adopted ASC 842, concurrent with ASC 842. | Yes |
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