A converged revenue recognition accounting standard continues to be a topic of interest and debate. Last week, the Financial Accounting Standards Board (FASB) announced a one-year on standardizing U.S. treatment of revenue recognition with the International Accounting Standards Board (IASB).
The delayed implementation of a converged accounting standard is welcome news to many companies on both sides of the Atlantic. The deferral offers the standard setters more time to provide clarifications on how to implement a new standardized treatment of revenue recognition and allows companies more time to apply the standard.
In the FASB announcement, publically traded business, some not-for-profits, and employee benefit plans were informed they should apply the new standard to annual reporting periods beginning after December 15, 2017.
Most companies are expected to apply the new standard for annual reporting periods beginning after December 15, 2018 and interim reporting periods within annual reporting periods beginning after December 15, 2019.
For questions around the convergence of revenue recognition, contact Scott Walters, Audit and Assurance Services Leader, at [email protected].