The Financial Accounting Standards Board (FASB) has voted to propose deferring the effective date for the new revenue recognition standard established by Accounting Standards Update (ASU) 2014-09. This deferral would apply to both public and nonpublic entities.
Based on input from various stakeholders, the FASB determined that a deferral of the implementation date was needed in order to provide sufficient time to implement the new revenue recognition standard. This vote does not represent a final decision of the FASB. The FASB will issue an Exposure Draft and provide a 30-day comment period.
If this deferral is issued in final form, ASU 2014-09 would be effective for a public entity for annual periods beginning after December 15, 2017, including interim periods within that reporting period.
For all other entities (nonpublic entities), ASU 2014-09 would be effective for annual periods beginning after December 15, 2018 and interim periods within annual periods beginning after December 15, 2019.
The proposal indicates that early adoption would be permitted but not earlier than the original effective date for public entities.