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FASB Delays Revenue Recognition Standard and Proposes Changes


In early April the Financial Accounting Standards Board (FASB) announced that it will formally delay the required adoption date for the sweeping changes to revenue recognition a full year (for now.)   Under this delay, the earliest a calendar year-end privately held business would be required to comply with the standard would be December 31, 2019.  The FASB cites the need for more time and information regarding the implementation of the standard for a host of reasons, including complexity, IT System limitations, and personnel limitations for many companies.

Yesterday the FASB announced they intend to change the revised standard during this period.  The changes are intended to clarify the guidance as it relates to identifying multiple performance obligations, and address the likelihood that the guidance will be applied inconsistently in practice.