FASB to Defer Effective Date of Revenue Recognition Standard

The Financial Accounting Standards Board has approved an exposure draft that would defer the effective date of its new revenue recognition standard by one year. The proposal would require public entities to apply the new standard in 2018. Nonpublic entities would apply the new standard in 2019. Both public and nonpublic entities would still be permitted to adopt the amendments as of the original effective date, 2017.

The new revenue standard has been expected to have an impact on bank financials through changes in accounting for investment management incentive fees, sales of real estate and certain credit card affinity programs. More significantly, however, the new standard will impact the financial analyses performed by many banking credit officers, especially those serving the construction and high-tech industries.

About Michael Gullette

Michael Gullette
Michael Gullette is vice president for accounting and financial management policy at ABA.
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