At its Oct. 16, 2019, meeting, the FASB voted to defer the effective dates for several major standards. The deferred effective dates are staggered for different types of entities, including SEC filers, smaller reporting companies (SRCs), other public business entities (PBEs), private companies, and not-for-profit entities.
The following tables summarize the revisions to the effective dates for each major standard. The FASB expects to issue Accounting Standards Updates (ASUs) to defer the effective dates in November 2019.
Note that an entity will use its most recent SRC status as of the issuance date of the ASUs to determine the effective dates. The effective dates cannot be reassessed in future periods. An entity’s ability to early adopt the guidance in each of the ASUs for which effective dates is deferred is unchanged.
Public business entity
As defined in the Master Glossary in the FASB’s Codification, a public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity:
- It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing).
- It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC.
- It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer.
- It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on
an exchange or an over-the-counter market.
- It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion.
An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity’s filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC.
Securities and Exchange Commission (SEC) filer
An SEC filer is defined in the Master Glossary as an entity that is required to file or furnish its financial statements with either of the following:
- The Securities and Exchange Commission (SEC)
- With respect to an entity subject to Section 12(i) of the Securities Exchange Act of 1934, as amended, the appropriate agency under that Section
Financial statements for other entities that are not otherwise SEC filers whose financial statements are included in a submission by another SEC filer are not included within this definition.
Smaller reporting company
Smaller reporting company is defined in Rule 12b-2, Definitions
, of the Securities Exchange Act of 1934; Rule 405, Definition of terms
, in the Securities Act of 1933; and Item 10(f) of Regulation S-K.
Refer to “New Developments Summary: ‘Smaller reporting company’ redefined
” for information about the definition of “smaller reporting company.”
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