We previously issued a news article on proposed Accounting Standards Update (the “Proposed ASU”) which introduced two buckets approach and on potential delay of certain new accounting standards. For more details on the FASB’s new philosophy of two-bucket approach and the proposed ASU, see our news article published on august 15, 2019 here .
On November 15, 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2019-10 (“ASU 2019-10”) which extends effective dates of the certain new accounting standards. Updated schedule is as follows:
| Topic | Bucket 1 | Bucket 2 | Early Adoption |
| Financial Instruments – Credit Losses (Topic 326) | Fiscal years beginning after 12/15/2019, including interim periods within those fiscal years | Fiscal years beginning after 12/15/2022, including interim periods within those fiscal years | Permitted (for fiscal years beginning after 12/15/18 including interim periods within those fiscal years) |
| Derivatives and Hedging (Topic 815) | Fiscal years beginning after 12/15/2018, including interim periods within those fiscal years | Fiscal years beginning after 12/15/2019, including interim periods within fiscal years beginning after 12/15/2020 | Permitted |
| Leases (Topic 842) | Fiscal years beginning after 12/15/2018, including interim periods within those
fiscal years |
Fiscal years beginning after 12/15/2019, and interim periods within fiscal years beginning after 12/15/2020 | Permitted |
For more details, please see the ASU 2019-10.