UPDATE: FASB Votes to Defer Effective Date of the New Revenue Recognition Standard

Updated from an earlier posted Schneider Downs article regarding the deferral of ASU No. 2014-09.

The Financial Accounting Standards Board (FASB) had a board meeting on April 1, 2015, and it discussed the results of staff research and outreach regarding the effective date of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09).  The Board decided to defer the effective date of ASU 2014-09 by one year. The FASB will issue an exposure draft with a 30-day comment period.

As a result, public entities would apply ASU 2014-09 to annual reporting periods beginning after December 15, 2017. Nonpublic entities would apply ASU 2014-09 to annual reporting periods beginning after December 15, 2018.

Public entities would apply ASU 2014-09 to interim reporting periods within annual reporting periods beginning after December 15, 2017 (that is, a public entity would be required to apply the new revenue standard beginning in the first interim period within the year of adoption). Nonpublic entities would apply ASU 2014-09 to interim reporting periods within annual reporting periods beginning after December 15, 2019 (that is, a nonpublic entity would not be required to apply ASU 2014-09 in interim periods within the year of adoption).

The Board decided to permit both public and nonpublic entities to adopt the new revenue standard early, but not earlier than, for annual periods beginning after December 15, 2016. A public entity would apply the new revenue standard to all interim reporting periods within the year of adoption. A nonpublic entity would not be required to apply the new revenue standard in interim periods within the year of adoption.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2024 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
Audit BY Erin Puko-Wilking
2024 Audit Plan Hot Spots
Cap Table Basics for Startup Companies
Potential Accounting Changes for Environmental Credits
PCAOB’s New Standard Enhances Auditors’ Use of Confirmations
Single Audit Reporting Reminders
Understanding Coronavirus State and Local Fiscal Recovery Funds Audit and Reporting Requirements
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us
Pittsburgh

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.

×