On July 9, 2015, the Financial Accounting Standards Board (FASB), the entity responsible for US generally accepted accounting principles (US GAAP), approved a one-year deferral of its converged accounting standard on revenue recognition with the International Accounting Standards Board (IASB), the entity responsible for international financial reporting standards (IFRS). The two entities had proposed a one-year deferral of the accounting standard in April 2015 (for details on the proposal, see Legal Update, FASB and IASB Propose One-year Deferral of Revenue Recognition Accounting Standard).

The FASB plans to issue a final Accounting Standards Update by the end of the third quarter of 2015 that formally amends the effective dates of the revenue recognition accounting standard.

To learn more about financial reporting in the US, see Practice Notes, Financial Reporting in the US: Basic Concepts and Financial Reporting in the US: Key Topics for Corporate Counsel.