M&D Guidance: Implementation of the New Revenue Recognition Standard
In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from
Contracts with Customers (Topic 606). ASU 2014-09 represents the single largest change in
accounting literature in more than a decade.
Although ASU 2014-09 isn’t required to be adopted by nonpublic entities until reporting periods
beginning on or after December 15, 2018 (and reporting periods beginning on or after December
15, 2017 for public entities), the implementation of ASU 2014-09 will require a significant
amount of time and resources to ensure effective and efficient implementation. Therefore,
manufacturers and distributors should develop a transition plan now to ensure compliance
by the required adoption dates.