FASB Proposes Deferral of New Revenue Standard ASU 2014-09, Revenue from Contracts with Customers
On April 1, 2015, the Financial Accounting Standards Board (“FASB” or “the Board”) approved issuing an exposure draft to defer the effective date of the new revenue standard, Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, for both public and private companies. The Board directed its staff to prepare the exposure draft which will have a 30-day comment period. The ASU, as issued, was effective for public companies beginning with the first fiscal year beginning after December 15, 2016, and the interim periods within that fiscal year, and for private companies for the first annual period beginning after December 15, 2017, and interim periods in the following fiscal year. The FASB approved proposing a one-year deferral for both public and private companies, and giving both public and private companies the option to “early” adopt using the original effective dates.
The exposure draft will include questions on whether the one-year deferral is sufficient, or whether it should be made two years, or a blend of one-year and two-year periods. The FASB is targeting finalization of this proposal for near the middle of this year.