The International Accounting Standards Board (IASB) today voted to publish an Exposure Draft proposing a one-year deferral of the effective date of the revenue Standard to 1 January 2018.
The new revenue Standard (IFRS 15 Revenue from Contracts with Customers) was issued jointly by the IASB and the US Financial Accounting Standards Board (FASB) in May 2014 with an effective date of 1 January 2017. The IASB will consult on the proposed deferral of the effective date by one year before it is confirmed, as is required by its due process. Early application of the Standard would still be permitted.
The reason for deferring the effective date is that the IASB is planning to issue an Exposure Draft with proposed clarifications to the Standard, stemming from the joint Transition Resource Group (TRG) meetings, as well as the desire to keep the effective date of the IASB’s and the FASB’s revenue Standards aligned. The FASB voted to propose a one-year deferral of the effective date of the Standard earlier this month.