Certain entities that have not either issued their financial statements or made them available for issuance may elect one of the following options:

  • Adopt the guidance for annual reporting periods beginning after December 15, 2019, and for interim reporting periods within annual reporting periods beginning after December 15, 2020.
  • Follow the original effective date of annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019

Companies may use either the modified retrospective method (ASC 606-10-65-1(d)(2)) or the full retrospective method (ASC 606-10-65-1(d)(1)), as outlined below. Keep in mind that while the modified retrospective approach may be easier to implement, some items (e.g., recognized revenue and income trends) may not reflect the true circumstances. In certain circumstances, the full retrospective approach may provide the needed consistency and comparability between periods.

To help you stay in compliance with revenue recognition standards, save this Construction Issue Sheet.