AICPA Issues Alert on Revenue Recognition Standard
Offering guidance to practitioners implementing the joint Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) standard, Revenue from Contracts with Customers, the American Institute of Certified Public Accountants (“AICPA”) recently issued Understanding Revenue Recognition: Changes to U.S. GAAP. The alert includes:
- a summary and overview of FASB’s Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), and IASB’s IFRS 15, Revenue from Contracts with Customers;
- advice on helping entities transition to the new standard;
- AICPA’s learning and implementation plan; and
- a mapping tool chronicling key revenue recognition matters.
The ASU 2014-09 amendments are effective for public entities during annual reporting periods starting after December 15, 2016, as well as interim periods within that timeframe. Amendments will be effective for all other entities during annual reporting periods starting after December 15, 2017, and interim periods within annual periods starting after December 15, 2018, conditional on certain transition rules. Early application of the amendments is not permitted.