The newly passed ASU 2020-05 will postpone the date that ASC 606 goes into effect for the organizations listed that have yet to issue their financial statements or make their financial statement readily available to be provided to annual periods. 2014-09 , Revenue from Contracts with Customers (Topic 606). It’s not uncommon for the FASB to delay accounting standards because companies are struggling to implement the new rules in time. Given the criticality of revenue recognition in financial reporting, ASC 606 is worth a moment to review. Dabei verfolgt SAP den Ansatz, dass die Erläuterung der Verbesserungen entlang der Geschäftsszenarien und ihrer jeweiligen Auswirkungen die Komplexität des Themas am besten herunterbrechen kann. Additionally, the FASB staff provided guidance regarding several technical inquiries it has received related to the impact of COVID-19. Some respondents also requested a delay for Accounting Standards Update (ASU) 2018-08, Not-For-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. The release of ASC 606 – Revenue from Contracts with Customers by FASB provided substantial changes to standards governing revenue recognition for financial statement purposes. As I am sure many of you are well aware, FASB recently proposed a one year deferral for the new revenue recognition standard, ASC 606. Does the FASB’s Delay on ASC 606 Spell Relief? 1. On May 20, 2020, FASB reviewed feedback on its April 21, 2020, proposal to delay the effective date for Accounting Standards Codification (ASC) 842, Leases, for private companies and all not-for-profits (NFP), including an NFP that has issued—or is a conduit bond obligor for—securities that are traded, listed or quoted on an exchange or an over-the-counter market. Even though these changes are now a little further away and many companies seem to breathing a sigh of relief, it would be a mistake to procrastinate. Keeping abreast of industry alerts is critical. This could be an oral, written or implied agreement. ASC 606 requires a detailed review of existing and pending contracts with customers and follows a 5-step process to determine the timing and recognition of revenue related to such contracts. For technical questions about Topic 606 and Topic 842, contact Tricia Katebini, CPA, MBA, Senior Manager, at tkatebini@grfcpa.com or 301-951-9090. For these entities, the FASB will defer the effective date of ASC 606 to annual reporting periods beginning after December 15, 2019, and interim reporting periods within annual reporting periods beginning after December 15, 2020. What makes it so relevant is the way it will eventually transform how companies go to market—in every industry. If you have questions, contact your BKD Trusted Advisor™ today. The document explains, step-by-step, how to account for … According to FASB, the Board noted that “challenges associated with transition to a major ASU such as Topic 606 and Topic 842 are often magnified for private companies, smaller public companies, and nonprofit entities. New York, NY 10005 The deferral of ASC 606 is expanded from the previous proposal and will be available to entities in all industries. Both public and privately held companies should be ASC 606 compliant now based on the 2017 and 2018 deadlines. Based on the feedback received, FASB voted to expand the scope of the ASC 606 delay to all entities for financial statements that have not yet been issued or made available for issuance. 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