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What is my Initial Application Date?
Setting your initial application date may be tricky when you're getting started. We've scoured the FASB and GASB guidelines to make it easier for you.
TIPS FOR FASB
The Initial Application Date is the beginning of the earliest period presented in the financial statements in which the lease standard is first applied.
- An election can be made to avoid restating prior periods.
- For a non-public company not restating prior periods and with a December 31 fiscal year-end, the Initial Application Date is January 1, 2022.
- For a non-public company not restating prior periods and with a June 30 fiscal year-end, the Initial Application Date is July 1, 2022.
TIPS FOR GASB
The Initial Application Date is the beginning of the earliest period presented in the financial statements in which the lease standard is first applied. To select your Initial Application Date, you must first determine your Effective Date.
- Entities subject to GASB 87 have an Effective Date for fiscal years beginning after June 15, 2021, with a requirement to restate prior periods unless it is not practical.
- Entities subject to GASB 96 have an Effective Date for fiscal years beginning after June 15, 2022, with a requirement to restate prior periods unless it is not practical.