As expected, the International Accounting Standards Board (IASB) this week voted in favor of a one-year deferral of the start date for the newly converged revenue guidance.
Though the delay would maintain alignment with the Financial Accounting Standards Board (FASB) proposal earlier this month for a similar one-year delay to their new standard, officials for the international governing body said the move was made in response to mounting feedback from their constituents, according to reports.
Financial statement preparers, particularly those in the telecommunication and automotive industries, requested the delay due to recent amendments to the standard requiring additional analysis and changes in their software solutions among other reasons, according to IASB findings as reported in the Journal of Accountancy.
“Everybody underestimated how much work it takes to do these things [for implementation],” IASB member Gary Kabureck said during the board’s meeting on April 28.
The proposed delay, which will be put forward for public comment and likely finalized in July, would shift the effective date of the new guidelines to January 1, 2018. The IASB would continue to allow for early adoption.
To know more about the further changes proposed by FASB, click here.