In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606) providing a comprehensive accounting standard relating to the recognition of revenue for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in GAAP when it becomes effective.
Recently, the FASB voted for a one-year deferral of the effective date for both public and private entities. The FASB will issue an exposure draft with a 30 day comment period.
The proposal would require public entities to apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Public entities would be permitted to elect to adopt the amendments as of the original effective date (i.e., for annual reporting periods beginning after December 15, 2016).
The proposal would require nonpublic entities to apply the amendments in ASU 2014-09 for an annual reporting period beginning after December 15, 2018 (i.e., January 1, 2019, for a calendar year entity). A nonpublic entity may elect to apply the amendments as of the original effective for public companies (i.e., an annual reporting period beginning after December 15, 2016, including interim reporting periods therein).
For more information or to discuss further, please contact your Dean Dorton advisor, Crissy Fiscus at 859.425.7631 or cfiscus@deandorton.com, or Simon Keemer at 502.566.1036 or skeemer@deandorton.com.
