Proposal to Delay the Effective Dates of ASC 606 and ASC 842 for Certain Entities. FASB Delays Revenue Recognition Effective Date for Private Companies Published on: 05/21/2020 By: GSG On Wednesday, May 20th, the Financial Accounting Standards Board (FASB) voted to delay the implementation of the new revenue recognition standards, FASB Accounting Standards Codification (ASC) Topic 606, Revenue From Contracts With Customers, for one year for all entities … Accounting Standards Update 2020-05—Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities By clicking on the ACCEPT button, you confirm that you have read and understand the FASB Website Terms and Conditions. The FASB has voted to delay the effective date for Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers for all nonpublic entities that have not yet issued financial statements reflecting the implementation of the new standard. 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 … On April 8 th, FASB delayed for one year the implementation of the new ASC 606 revenue recognition standards for private companies, citing the coronavirus pandemic. ASU 2014-09 REVENUE FROM CONTRACTS WITH CUSTOMERS (TOPIC 606) Overview On May 28, 2014, the FASB completed its Revenue Recognition project by issuing Accounting Standards Update No. On Wednesday, May 20, the Financial Accounting Standards Board (FASB) met virtually to discuss comment letter feedback on the proposed Accounting Standards Update (ASU), Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities. The initial proposed ASU was issued in April 2020 and would have delayed Accounting Standards Codification … Leasing delay The leases standard already took effect for public companies at the start of 2019 and was supposed to take effect at the beginning of this year for private companies and nonprofits. The proposal included an extra year to implement ASC 606, Revenue from Contracts with Customers, only for nonpublic franchisors. 2016-10 April 2016 Revenue from Contracts with Customers (Topic 606) Identifying Performance Obligations and Licensing Accounting Standards Update Financial Accounting Standards Board Background The FASB issued a proposed ASU in April, for which the comment period closed May 6, 2020. At its May 20, 2020 meeting, the FASB voted to approve the proposed deferrals of the effective date for ASC 842, Leases (“ASC 842”), and ASC 606, Revenue from Contracts with Customers (“ASC 606”), for certain entities. Surprise! The Financial Accounting Standards Board has issued ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) Effective Dates for Certain Entities.ASU 2020-05 finalizes the effective date changes discussed below. In addition to delaying implementation, FASB indicated it would investigate “how to reduce implementation costs relating to applying Topic 606 to initial franchise fees.” With the COVID-19 pandemic bringing unexpected challenges over the course of the last few months, FASB has officially issued Accounting Standards Update (ASU) 2020-05 providing privately-held entities and private nonprofit organizations with a one-year deferral of the ASC 606, Revenue from Contracts with Customers, effective dates, and ASC 842, Leases. An Amendment of the FASB Accounting Standards Codification® No.