FASB Votes to Propose a Deferral to the Effective Date for Revenue Recognition Standard by One Year
AAFCPAs would like to inform you of an update from today’s FASB Board Meeting (April 1, 2015), in which they voted to propose a one-year deferral of the effective date of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“the new revenue standard”).
Following a member comment period (30-days), we anticipate that FASB would issue an Accounting Standards Update (ASU), which would modify the new revenue standard and defer the effective date by one year. As a result, nonpublic entities would apply the new revenue standard to annual reporting periods beginning after December 15, 2018. Public organizations would apply the new revenue standard to annual reporting periods beginning after December 15, 2017. This standard would also apply to nonprofits, unless the entity has issued securities that are traded, listed or quoted on a public exchange, or is a conduit bond obligor of same.
Read more about this tentative FASB board decision. Tentative Board decisions may change at future Board meetings. We will continue to keep you informed as new guidance is released.
If you have any questions or need additional information, please contact your AAF Partner, or Jeffrey Mead, CPA, audit partner, at 774.512.4131, email@example.com.