Six proposed, small-scale changes have been added to the list of updates to ASU 2014-09, Revenue from Contract with Customers (Topic 606). The exposure draft of the changes, released by the Financial Accounting Standards Board (FASB), does not materially change the five-step process for revenue recognition put in place by ASU 2014-09. A recent article by Tampa Bay Managing Director, Brad Hale, discusses the changes and how they are designed to address six areas of implementation concern raised by the Transition Resource Group:
- Collectability Criterion
- Presentation of Taxes Collected from the Customer
- Noncash Considerations
- Contract Modifications at Transition
- Completed Contracts at Transition
- Technical Correction to Transition Guidance
As part of the exposure draft, the FASB agreed to add items related to the adoption and transition to the new revenue recognition guidance to its technical agenda. Further implementation concerns and issues will likely arise before the guidance starts to roll out in 2018, and we will keep you up-to-date as these changes occur.
For more information about the six proposed changes, read the full article here. If you have questions about how revenue recognition will impact your organization, please contact Brad at email@example.com or 727.572.1400.