IASB to discuss effective date of IFRS 15
20 Apr, 2015
In preparation for the IASB's meeting next week, an agenda paper has been released today discussing the effective date of IFRS 15 and asking the IASB whether it wishes to defer the effective date in the light of (i) issues emerging from discussions of the Revenue Transition Resource Group (TRG) and (ii) the FASB’s tentative decision regarding the effective date.
In the paper the IASB staff makes the following recommendations:
If the IASB agrees to propose a deferral of the effective date, we recommend publishing the proposed deferral for comment as a separate narrow-scope Exposure Draft. That Exposure Draft would include a comment period of no less than 30 days that allows for the finalisation of the IASB’s discussions in this respect at the July 2015 board meeting.
In May 2014, the IASB and FASB issued converged standards on revenue recognition and also agreed a common effective date. However, in April 2015 the FASB tentatively decided to defer for one year the effective date of its new revenue standard (ASU 2014-09 Revenue From Contracts With Customers) for public and nonpublic entities reporting under US GAAP. The IASB staff is now asking the IASB whether it wants to follow suit in the light of issues discussed at the TRG meetings and intended clarifications as well as in order to keep up convergence with the FASB.
Please click to access the agenda paper on the IASB website. It offers the staff's recommendations, historical background, an explanation of what the FASB has decided, and a summary of IFRS stakeholder feedback.
