The Financial Accounting Standards Board (FASB), on July 9, 2015, approved a one-year deferral of the effective date of Accounting Standards Update (ASU) 2014-09 Revenue from Contracts with Customers. The new revenue recognition standard will now become effective Jan. 1, 2019, for nonpublic, calendar-year entities.
Although deferred until the 2019 calendar year, entities that present comparative financial statements are required to present both years under the new standard. Therefore, entities need the ability to track their revenues under the new rules starting in 2017.
This decision was driven largely by the input of stakeholders through the FASB’s Transition Resource Group (TRG), which is charged with informing the FASB about potential implementation issues.
The FASB will next draft an Accounting Standards Update for formal written vote to incorporate the deferral into the codification.
For more information on this ASU or the TRG, visit fasb.org.