FASB Approves One-Year Delay of Revenue Recognition Standard’s Effective Date
Business Associates and Friends,
At Berman Hopkins Wright & LaHam, we strive to ensure that you are informed about important matters that may significantly impact your operations, cash flows and financial reporting.
In a blog post circulated during August of 2014 we informed of FASB’s publication of Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers.
On July 9, 2015, the FASB agreed to give companies an extra year to comply with its landmark revenue recognition standard. As a result, the new U.S. GAAP rules now become effective for non-public entities in calendar year 2019, one year after the revised effective date for public entities. Two FASB members voted for a two-year delay in the standard, but were outvoted. Regardless, implementation of the new standard remains eminent. As such, understanding the requirements and their effect on your entity, including possible reconsideration of your contracts, how you conduct business, and reporting of those results, remains critical.
Read more about this delay in the following attached items:
- 7-9-2015 Journal of Accountancy Article
- 7-9-2015 News Flash from Checkpoint
- 7-10-2015 WG&L Accounting & Compliance Alert
Berman Hopkins maintains a professional library that includes various resources about this new standard that will benefit your entity. Our professionals have access to these resources, are informed about the standard, and are monitoring implementation issues and guidance particular to your individual circumstances as they evolve and as information is disseminated. Finally, we are available to assist you and will continue to share information as appropriate.
Your Berman Hopkins Team