Revenue Recognition Standard Potentially Delayed for a Year
The Financial Accounting Standards Board (FASB) has reached a decision to potentially delay the implementation of the new revenue recognition standard, Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09).
Under anticipated new guidance, ASU 2014-09 will become effective for public companies for annual reporting periods beginning after Dec. 15, 2017. Nonpublic companies will have to adopt the new standard for all annual reporting periods beginning after Dec. 15, 2018. The standard applies on a retroactive basis, so all periods presented will need to comply with the new revenue standards once adopted. The FASB has permitted early adoption for both public and nonpublic companies, but not before the original adoption date of public companies, which was for annual periods beginning after Dec. 15, 2016.
Once issued, the proposed ASU will be open to public comment for 30 days.
Presentation of Debt Issue Costs
On April 7, 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, not as an asset. The ASU does not affect the recognition and measurement guidance related to debt issuance costs. The ASU should be applied on a retrospective basis, when comparative balance sheets are presented.
ASU 2015-03 is effective for financial statements issued for fiscal years beginning after Dec. 15, 2015. Early adoption is permitted for financial statements that have not been previously issued.