Yesterday, the FASB decided to propose a one-year deferral to the effective date of the new revenue recognition standard. Under the new proposal, public companies using US GAAP would now apply the revenue standard to annual reporting periods beginning after Dec. 15, 2017. US nonpublic organizations would apply the revenue standard to annual reporting periods beginning after Dec. 15, 2018. According to published reports, FASB staff had proposed a two-year deferral, but the board went forward with a one-year delay instead. Also, the FASB is allowing early adoption of the revenue rule. An Accounting Standards Update on the proposal is expected to be issued in the coming weeks, which will be followed by a 30-day public comment period.
Several companies had asked the FASB to push back the revenue standard's effective date. Do you think an extra year will give companies enough time to update their systems and processes? Or would two years have been more beneficial? What are you hearing from your clients?