Citing challenges for financial statement preparers to implement the new revenue model, the Financial Accounting Standards Board (FASB) announced earlier this month it voted to approve a proposed one-year deferral of the effective date of Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers.

Should the proposed ASU be approved, companies would follow the following guidelines related to the original ASU’s implementation:

  • Non-public entities: Annual reporting periods beginning after Dec. 15, 2018 (2019 for calendar-year entities) and interim reporting periods within annual reporting periods beginning after Dec. 15, 2019.
  • Public entities: Annual reporting periods and interim reporting periods within annual reporting periods beginning after Dec. 15, 2017 (2018 for calendar-year entities).
  • Early adoption is permitted for all entities after the annual reporting period beginning Dec. 15, 2016.

Similarly, the International Accounting Standards Board (IASB) also has proposed a one-year delay in its new revenue recognition standard.

Need further clarification or help assessing the standards effects on your accounting methods? Contact Doeren Mayhew’s accounting advisors in Michigan, Houston and Ft. Lauderdale.