{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/606/10/#sec-65-transition-and-open-effective-date-information","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"606","topic_title":"Revenue from Contracts with Customers","subtopic":"606-10","subtopic_title":"Overall","section":{"number":"S65","label":"SEC 65 Transition and Open Effective Date Information","anchor":"sec-65-transition-and-open-effective-date-information","is_sec":true,"groups":[{"block":null,"heading":"SEC Staff Guidance","paragraphs":[{"citation":"606-10-S65-1","para":"S65-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_A555AB08-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The following is the text of SEC Staff Announcement: Transition Related to Accounting Standards Updates No. 2014-09 and 2016-02. </span></span><ul class=\"ul simple\" id=\"SL113361816-223746__GUID-F406198E-93F9-4537-8C0D-3EC0728B55F5\"><li class=\"li\" id=\"SL113361816-223746__SL113361818-223746\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_A555AC2C-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">FASB Accounting Standards Updates No. 2014-09, <em class=\"ph i\">Revenue from Contracts with Customers (Topic 606)</em>, issued in May 2014 and codified in ASC Topic <a altsource=\"GUID-90450890-CA59-4C9A-A88C-D53D3DE3192F.ditamap\" class=\"ditamap\">606</a>, Revenue from Contracts with Customers, and No. 2016-02, <em class=\"ph i\">Leases (Topic 842)</em>, issued in February 2016 and codified in ASC Topic <a altsource=\"GUID-EFFBD456-3862-4F38-9F32-420717B43DE5.ditamap\" class=\"ditamap\">842</a>, Leases, provide effective dates that differ for (1) <a href=\"/glossary/p/#public-business-entity\" class=\"term\" title=\"A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC.\"><span>public business entities</span></a> and certain other specified entities and (2) all other entities. The SEC staff has received inquiries from stakeholders regarding the application of the effective dates of ASC Topic <a altsource=\"GUID-90450890-CA59-4C9A-A88C-D53D3DE3192F.ditamap\" class=\"ditamap\">606</a> and ASC Topic <a altsource=\"GUID-EFFBD456-3862-4F38-9F32-420717B43DE5.ditamap\" class=\"ditamap\">842</a> for a public business entity<sup class=\"ph sup\">FN1</sup> that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity's filing with the SEC.</span></span></div></li><li class=\"li\" id=\"SL113361816-223746__SL113361823-223746\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_A555AD36-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The transition provisions in ASC Topic <a altsource=\"GUID-90450890-CA59-4C9A-A88C-D53D3DE3192F.ditamap\" class=\"ditamap\">606</a> require that a public business entity and certain other specified entities adopt ASC Topic 606 for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. <sup class=\"ph sup\">FN2</sup> All other entities are required to adopt ASC Topic 606 for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019.</span></span></div></li><li class=\"li\" id=\"SL113361816-223746__SL113361825-223746\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_A555AE18-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The transition provisions in ASC Topic <a altsource=\"GUID-EFFBD456-3862-4F38-9F32-420717B43DE5.ditamap\" class=\"ditamap\">842</a> require that a public business entity and certain other specified entities adopt ASC Topic 842 for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. <sup class=\"ph sup\">FN3</sup> All other entities are required to adopt ASC Topic 842 for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020.</span></span></div></li><li class=\"li\" id=\"SL113361816-223746__SL113361827-223746\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_A555AF02-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In response to the stakeholder inquiries outlined above, the SEC staff would not object to a public business entity that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity's filing with the SEC adopting (1) ASC Topic <a altsource=\"GUID-90450890-CA59-4C9A-A88C-D53D3DE3192F.ditamap\" class=\"ditamap\">606</a> for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019, and (2) ASC Topic <a altsource=\"GUID-EFFBD456-3862-4F38-9F32-420717B43DE5.ditamap\" class=\"ditamap\">842</a> for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020.</span></span></div></li><li class=\"li\" id=\"SL113361816-223746__SL113361830-223746\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_A555AFD7-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A public business entity that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity's filing with the SEC may still elect to adopt ASC Topic <a altsource=\"GUID-90450890-CA59-4C9A-A88C-D53D3DE3192F.ditamap\" class=\"ditamap\">606</a> and ASC Topic <a altsource=\"GUID-EFFBD456-3862-4F38-9F32-420717B43DE5.ditamap\" class=\"ditamap\">842</a> according to the public business entity effective dates outlined above.</span></span></div></li><li class=\"li\" id=\"SL113361816-223746__SL113361831-223746\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_A555B0A0-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This announcement is applicable only to public business entities that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity's filing with the SEC. This announcement is not applicable to other public business entities.</span></span></div></li><li class=\"li\" id=\"SL113361816-223746__SL113361832-223746\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_A555B161-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">FN 1 The definition of <em class=\"ph i\">Public Business Entity</em> in the FASB's ASC Master Glossary states, in part, the following:</span></span></div><ul class=\"ul simple\" id=\"SL113361816-223746__GUID-510F0EC2-ABB2-4FD3-91B9-F63B91857ADA\"><li class=\"li\" id=\"SL113361816-223746__SL113361833-223746\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_A555B219-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A public business entity is a business entity meeting any one of the criteria below . . .</span></span></div><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_A555B2D3-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing) . . . </span></span></div></li></ol></li><li class=\"li\" id=\"SL113361816-223746__SL113361835-223746\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_A555B38F-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC. </span></span></div></li></ul></li><li class=\"li\" id=\"SL113361816-223746__SL113361836-223746\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_A555B46B-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">FN 2 Early adoption of ASC Topic <a altsource=\"GUID-90450890-CA59-4C9A-A88C-D53D3DE3192F.ditamap\" class=\"ditamap\">606</a> is permitted for public business entities and certain other specified entities only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. </span></span></div></li><li class=\"li\" id=\"SL113361816-223746__SL113361837-223746\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_A555B51A-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">FN 3 Early adoption of ASC Topic <a altsource=\"GUID-EFFBD456-3862-4F38-9F32-420717B43DE5.ditamap\" class=\"ditamap\">842</a> is permitted for public business entities and certain other specified entities, as well as for all other entities. </span></span></div></li></ul></div></div>","snippet":"The following is the text of SEC Staff Announcement: Transition Related to Accounting Standards Updates No. 2014-09 and 2016-02.\nFASB Accounting Standards Updates No. 2014-09, Revenue from Contracts with Customers (Topic…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dff7021159244b7bc51d86ab12e029c25acc2014e72de8eac301975d358b49a1","downloaded_from":"2026-09-09T23:18:32.707Z","last_downloaded_at":"2026-09-09T23:18:32.707Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483624","source_sha256":"f2c4f3c9b5cee0c75ed90109bd55ae8645a91ced14206d58ff39608189b1c994"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c270ff1012f074da022308f5c2040c262771681961a510f22f88d7b854d4f406","downloaded_from":"2026-09-09T23:18:32.707Z","last_downloaded_at":"2026-09-09T23:18:32.707Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483624","source_sha256":"f2c4f3c9b5cee0c75ed90109bd55ae8645a91ced14206d58ff39608189b1c994"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:375a195108c6d39bd7291427e9e97b43a9ac565fcf0254973f024924e81dcfe3","downloaded_from":"2026-09-09T23:18:32.707Z","last_downloaded_at":"2026-09-09T23:18:32.707Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483624","source_sha256":"f2c4f3c9b5cee0c75ed90109bd55ae8645a91ced14206d58ff39608189b1c994"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:375a195108c6d39bd7291427e9e97b43a9ac565fcf0254973f024924e81dcfe3","downloaded_from":"2026-09-09T23:18:32.707Z","last_downloaded_at":"2026-09-09T23:18:32.707Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483624","source_sha256":"f2c4f3c9b5cee0c75ed90109bd55ae8645a91ced14206d58ff39608189b1c994"}}