In May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) jointly issued a converged standard, providing guidance on the recognition of revenue from contracts with customers. The FASB version of the standard is referred to as ASU 2014-09. This is a historic, game-changing standard, since revenue is arguably the most influential driver on a company’s financial statement.
The FASB recently (July 9, 2015) voted to defer the effective date of the new revenue standard by one year. Thus, public entities are now required to implement the standard for annual reporting periods beginning on or after December 15, 2017, and nonpublic entities are required to implement the new standard for annual periods beginning on or after December 15, 2018. The standard itself was relatively unchanged; however, companies now have a longer period of time to understand and implement the requirements of the new standard.
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