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SEC Staff Provides More Time for Some Public Business Entities to Transition to New Revenue Recognition and Lease Guidance

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On July 20, 2017, at the meeting of the Financial Accounting Standards Board’s (FASB) Emerging Issues Task Force, the SEC Observer announced guidance relating to the transition effective date for Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), and ASU 2016-02, Leases (Topic 842), for certain public business entities.

The effective dates for Topic 606 and Topic 842 are outlined in the table below.

Transition Effective Dates

The SEC Observer announced that the SEC wouldn’t object if an entity that includes or is required to include its financial statements or financial information in another entity’s filing with the SEC, but would otherwise not meet the definition of a public business entity, uses the transition effective dates for all other entities. This decision to use the transition effective dates for all other entities is optional.

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