Revenue Recognition Standard: Implementation Considerations for Financial Institutions

In May 2014, the Financial Accounting Standards Board (FASB) issued a new revenue recognition standard – Accounting Standards Codification Update 2014-09, Revenue from Contracts with Customers. Due to a one-year deferral, the effective date for application of the new revenue recognition standard will be for annual reporting periods beginning after Dec. 15, 2017, for public business entities and for annual reporting periods beginning after Dec. 15, 2018, for non-public companies. Early adoption is permitted for both public and non-public companies for annual periods beginning after Dec. 15, 2016.

The extent of the effect upon each financial institution will depend largely upon its business activities and the terms of its contracts.