FASB considering revenue recognition delay to reduce uncertainty
FASB members plan to visit various companies to gain insight into potential implementation problems as the board considers whether to delay the effective date of the new, converged revenue recognition standard.
The board’s staff is also researching three potentially challenging accounting issues that have been discussed by the joint FASB/International Accounting Standards Board (IASB) Transition Resource Group.
The standard, published last May, is scheduled to take effect for reporting periods beginning after Dec. 15, 2016, for U.S. public companies or reporting periods beginning on or after Jan. 1, 2017, for companies that use IFRS.
But FASB is considering delaying the effective date because there is uncertainty over particular requirements in the standard. That uncertainty may cause trouble for U.S.-listed companies that are performing full retrospective adoption and will need to begin capturing information by the beginning of 2015.
“The boards need to stand ready to consider how to ensure that there won’t be unnecessary diversity,” FASB Chairman Russell Golden said Tuesday at the AICPA Conference on Current SEC and PCAOB Developments in Washington. Read more on the Journal of Accountancy.