FASB delays revenue recognition effective date

1-year deferral gives financial statement preparers more time for implementation.

Citing challenges for financial statement preparers, FASB voted to delay the effective date of the new revenue recognition standard by one year, with early adoption permitted as of the original effective date.

As a result of the delay, public business entities, certain not-for-profit entities, and certain employee benefit plans would apply the new revenue recognition standard in annual reporting periods beginning after Dec. 15, 2017, including interim reporting periods within that reporting period. Earlier application would be permitted only as of annual reporting periods beginning after Dec. 15, 2016, including interim reporting periods within that reporting period.

All other entities would have an additional year for implementation, applying the guidance to annual reporting periods beginning after Dec. 15, 2018, and interim reporting periods within annual reporting periods beginning after Dec. 15, 2019.

Application for all other entities would be permitted earlier only as of an annual reporting period beginning after Dec. 15, 2016, including interim reporting periods within that reporting period; or an annual reporting period beginning after Dec. 15, 2016, and interim reporting periods within annual reporting periods beginning one year after the annual reporting period in which an entity first applies the new guidance.

The International Accounting Standards Board (IASB) also approved a one-year delay in its new revenue recognition standard, which is converged with FASB's.

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

TECHNOLOGY Q&A

How to create maps in Excel 2016

Microsoft Excel 2016 has two new mapping capabilities. J. Carlton Collins, CPA, demonstrates how to make masterful 2D and 3D maps in Excel 2016.

QUIZ

News quiz: Taking an economic snapshot and looking to the future

Recent news included IRS actions that affect individuals and partnerships and a possibly influential move by a Big Four accounting firm.Take this short quiz to see how much you know about the news.