Project Description

The FASB issued a new standard on revenue recognition for recognizing revenue in contracts with customers. The guidance was issued in convergence with the IASB as part of the project to converge GAAP and IFRS. The new guidance is based on the core principle to “recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration of which the entity expects to be entitled in exchange for those goods or service.” The new guidance will affect essentially any organization that enters into contracts with customers to transfer goods or services as well as asset transfers included in contracts. The standard is effective for annual reporting periods beginning December 15, 2016 for public companies and December 15, 2017 for non-public companies. For ASU 2014-09 guidance, click here and here.