FASB Updates Revenue Recognition Guidance
The Financial Accounting Standards Board (“FASB”) recently issued Accounting Standards Update (ASU) No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify guidance in Topic 606 for identifying performance obligations in a contract and the licensing of intellectual property. Public entities must apply the new guidance for annual reporting periods, and interim periods therein, starting December 15, 2017. Early application is permitted for public entities as of annual reporting periods, and interim periods therein, starting December 15, 2016. Nonpublic entities have a one-year deferral of the effective date.
More on the issuance of ASU No. 2016-10 is available on the Bloomberg BNA Web site.