ASU 2014-09

Article Dean Dorton

Have you recently attended an accounting update or read an article about the new revenue recognition accounting standard (ASU 2014-09) which is impacting companies in 2018-2020 depending on fiscal year end and public company status? Hopefully, these items are triggering action steps if not already started. We can help with:

  1. Updating revenue process documentation
  2. Updating of revenue policies and selection of practical expedients
  3. Selection of transition method
  4. Drafting of financial statement disclosures
  5. Designing new controls
  6. Quantifying the impact to your revenues and net income

We are currently helping other clients navigate through this major change with our revenue and industry knowledge. We will remove this stress point from your task list and let you focus on your company’s strategic goals.

Please contact your Dean Dorton advisor to help you with your adoption of the new revenue standard (ASU 2014-09). Do not wait to the last minute and create stress and potential surprising results for your stakeholders.

Article Dean Dorton

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.

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