On April 1, 2015, the Financial Accounting Standards Board (FASB) voted to propose a delay in the effective date of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). The proposed changes are as follows:
- Entities other than public business entities (e.g., private companies). The proposed new effective date will be annual reporting periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. That means, for a private company with a calendar year-end, the ASU would be effective for the year ending December 31, 2019, and interim periods in 2020.
- Public business entities. The proposed new effective date will be annual reporting periods beginning after December 15, 2017, and the interim periods within that year. That means, for a public business entity with a calendar year-end, the ASU would be effective on January 1, 2018, for both its interim and annual reporting periods.
The proposal provides for a one-year deferral from the original effective date.
FASB will soon issue an exposure draft with the proposed new effective date provisions.
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