United States

Revenue recognition: Amendments to SEC paragraphs of FASB ASC

FINANCIAL REPORTING INSIGHTS  | 

The Financial Accounting Standards Board (FASB) recently issued Accounting Standards Update (ASU) 2017-14, Income Statement – Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606). This ASU provides amendments to certain SEC paragraphs within the FASB’s Accounting Standards Codification (ASC) reflecting the following updates to the SEC’s interpretive guidance regarding revenue recognition as a result of the issuance of ASU 2014-09, Revenue from Contracts with Customers (Topic 606):

The above updates apply upon a registrant’s adoption of ASC 606, and until such time, registrants should continue referring to the extant guidance. Implementation of ASC 606 must occur no later than the quarter and year beginning January 1, 2018, for public entities with a calendar year end (with a limited exception for certain public business entities). For all other entities with a calendar year end, implementation must occur no later than the year ending December 31, 2019.

Information regarding the FASB’s new revenue recognition guidance is available in our Revenue Recognition Resource Center.