Additional Activity Around FASB ASU 2009-14

Deferral of Effective Date

On April 29, 2015, FASB released a proposed accounting standards update to defer the effective date of the new revenue standard by one year. Comments are due by May 29, 2015, after which the Board will make a final decision.

As a result, public entities would apply the new revenue standard to annual reporting periods beginning after December 15, 2017. Nonpublic entities would apply the new revenue standard to annual reporting periods beginning after December 15, 2018.

Public entities would apply the new revenue standard to interim reporting periods within annual reporting periods beginning after December 15, 2017 (that is, a public entity would be required to apply the new revenue standard beginning in the first interim period within the year of adoption). Nonpublic entities would apply the new revenue standard to interim reporting periods within annual reporting periods beginning after December 15, 2019 (that is, a nonpublic entity would not be required to apply the new revenue standard in interim periods within the year of adoption).

The revised provisions would permit both public and nonpublic entities to adopt the new revenue standard early, but not before the original public entity effective date (that is, annual periods beginning after December 15, 2016). A public entity would apply the new revenue standard to all interim reporting periods within the year of adoption. A nonpublic entity would not be required to apply the new revenue standard in interim periods within the year of adoption.

On July 9, 2015, the FASB voted to defer the effective date of ASU 2014-09 for one year.

On August 12, 2015, FASB issued Accounting Standards Update (ASU) No. 2015-14, Revenue From Contracts With Customers (Topic 606): Deferral of the Effective Date, formally delaying for one year the effective date of its new revenue recognition standard.