IASB Follows FASB in 1-Year Delay on Revenue Recognition Standard
The International Accounting Standards Board confirmed Wednesday a one-year deferral of the effective date of the revenue recognition standard to stay in alignment with the Financial Standards Accounting Board, which also recently decided to defer the standard for companies in the U.S.
The effective date of the standard, known as IFRS 15 abroad, has been pushed back to Jan. 1, 2018. The IASB voted to confirm the one-year deferral, following a public consultation.
FASB and the IASB issued the revenue recognition standard in May 2014 after more than a decade of work on harmonizing U.S. GAAP with International Financial Reporting Standards. Companies applying IFRS will continue to have the option to apply the standard earlier if they wish to do so.
“The deferral will give companies more time to implement the standard in view of the clarifications that we will propose shortly,” said IASB chairman Hans Hoogervorst in a statement. "It also keeps the effective date aligned for IFRS and U.S. GAAP.” Read more on Accounting Today.