The final ASU is expected to be issued in the first week of June 2020. As a result, for such franchisors only, the revenue standard will be effective for periods beginning after December 15, 2019 and interim reporting periods within annual reporting periods beginning after December 15, 2020. Earlier today, the FASB voted in favor of a one-year deferral of the effective date of: ASC 842, Leases, for all private companies, and ASC 606, Revenue from Contracts with Customers, for privately-held franchisors. Similar relief has not been provided to these entities with respect to the adoption of the new guidance in ASC 815. Respondents to the proposed Update overwhelmingly support a deferral. The effective date deferral of FASB ASC 606 is not official U.S. Generally Accepted Accounting Principles (U.S. GAAP) until the FASB issues a final standard adopting the deferral. In response to the challenges of the COVID-19 pandemic, FASB issued Accounting Standards Update (ASU) 2020-05, which provides a one-year deferral of the effective dates of ASC 606, Revenue from Contracts with Customers, and ASC 842, Leases. ASC 842. While some companies have adopted ASC Topic 606 prior to the recent issuance of ASU 2020-05, which deferred the effective date, others have yet to implement the new accounting standard. Private companies are expected to have the option of adopting ASC 606 on the current effective date or deferring the implementation by one year. The deferral of ASC 606 is expanded from the previous proposal and will be available to entities in all industries. On April 8, 2020, the Financial Accounting Standards Board (“FASB”) voted to issue a proposal to defer for one year the effective date of the new Revenue Recognition Standards commonly referred to as “606.” This deferral will only apply to private company franchisors. The FASB also voted to defer the effective date for ASC 606, Contracts with Customers, for franchisors that are not public business entities for one year. While the impact of the deferral is yet to be seen, the FASB vote to allow a deferral could cause tax revenue recognition implications. Deferral of the effective date of Topic 606. Specifically, the Board deferred the effective dates of (1) ASC 606 for private companies and private not-for-profit (NFP) entities and (2) ASC 842 for private companies, private NFP entities, and public NFP entities. ASC Topic 606 supersedes long-standing, industry-specific guidelines and fundamentally changes how companies across nearly every industry should recognize revenue. ASC 606, Revenue from Contracts with Customers ASC 610-20, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets ASU 2014-09, Revenue from Contracts with Customers ASU 2015-14, Deferral of the Effective Date ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) The announcement that IFRS 15 effective date will be deferred to match ASC 606 has been widely anticipated, and may seem from the outside to gives telecom providers a little breathing room. Lease concessions. The related inquiries and staff observations summarized for the board were as follows. Summary. Accounting Standards Board (FASB or Board) deferred the effective date by one year for entities that had not yet issued (or made available for issuance) financial statements reflecting ASC 606 as of 3 June 2020, such as certain private companies and not-for-profit (NFP) entities. 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