The IASB proposed a delay in the effective date of the new revenue standard; the FASB issued its proposal for a delay.

1. IASB votes to propose one-year deferral of new
revenue standard; FASB issues its proposal
What happened?
On April 28, the IASB voted to propose a deferral of the effective date of the new revenue
standard by one year until January 1, 2018. The IASB’s proposal will retain the option for
entities to early adopt the standard. This decision follows the FASB vote earlier in the
month to propose a deferral of the effective date by one year, but to permit entities to
adopt the standard as of the original effective date. The FASB issued its proposal on April
29 with a 30-day comment period.
Why is this important?
The IASB’s decision to propose a deferral is expected to result in continued alignment
between the IFRS and U.S. GAAP required effective dates, which many believe is
important to the capital markets.
The IASB decided that a deferral is necessary to provide adequate time to effectively
implement the new revenue standard. The IASB staff cited several reasons to support the
deferral, including:
• maintaining the same effective date as U.S. GAAP;
• providing entities with sufficient time to implement any proposed amendments to
the standard;
• recognizing the delay in publication of the final standard (in May 2014 rather than
in 2013); and
• allowing preparers and auditors adequate time to resolve implementation issues.
The IASB and FASB decisions are not final. The proposals are subject to each of the
board’s due process requirements, which include a period for public comment.
What's next?
The IASB and FASB discussed several implementation issues related to the new revenue
standard at joint board meetings in February and March. The boards were aligned on the
need to address stakeholder feedback on licenses, performance obligations, and certain
practical expedients upon transition, but did not agree on the approach. The IASB is
expected to recommend more limited clarifications while the FASB changes will be more
extensive. The FASB has also decided to propose changes in other areas — for example,
guidance on collectibility and noncash consideration, and new practical expedients for
shipping and handling services and presentation of sales taxes collected from customers.
The joint discussions are expected to continue in the coming months.
The IASB plans to expose a single package of proposed amendments later this year. In
contrast, the clarifications proposed by the FASB will be released for public comment as
multiple exposure drafts.
No. US2015-13
April 29, 2015
At a glance
The IASB voted to
propose a one-year delay
in the effective date of the
new revenue standard;
the FASB issued its
proposal for a one-year
delay, with comments
due May 29.
National Professional Services Group | CFOdirect Network – www.cfodirect.pwc.com In brief 1

2. Comments on the FASB’s proposal for a one-year deferral of the new revenue standard
are due by May 29. For more information, see In transition US2015-04 and In brief
US2015-09, available on CFOdirect.com.
Questions?
PwC clients who have questions about this
In brief should contact their engagement
partner. Engagement teams who have
questions should contact the Revenue team
in the National Professional Services Group
(1-973-236-7804).
Authored by:
Brett Cohen
Partner
Phone: 973-236-7201
Email: brett.cohen@us.pwc.com
Angela Fergason
Managing Director
Phone: 408- 817-1216
Email: angela.fergason@us.pwc.com
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