IFRS 15 Will Not be Tested Before January 1, 2016

August 12, 2014

The AICPA, under the governance of its Board of Examiners (BOE), continually monitors the emerging standards of the profession and their eligibility for testing on the Uniform CPA Examination (“CPA Exam”). According to BOE policy, pronouncements are eligible for testing on the CPA Exam in the testing window beginning six months after their effective date. If early adoption is permitted, pronouncements are eligible for testing on the CPA Exam in the testing window beginning six months after their issuance date.

The International Accounting Standards Board issued IFRS 15, Revenue from Contracts with Customers, on May 28, 2014. IFRS 15 is effective for annual reporting periods beginning on or after January 1, 2017, and earlier application is permitted. Under the CPA Exam Policy on New Pronouncements, IFRS 15 would become eligible for testing on January 1, 2015, in the Financial Accounting and Reporting (FAR) section of the CPA Exam.

Given the scope and significance of IFRS 15, the AICPA Board of Examiners has decided that the standard will not be tested in the FAR section of the CPA Exam prior to January 1, 2016. The BOE will re-evaluate its decision during the second quarter of 2015 to determine whether an additional deferral of IFRS 15 is necessary. All other accounting and auditing pronouncements, including amendments to the FASB Accounting Standards Codification in Accounting Standards Update 2014-09, Revenue from Contracts with Customers, will continue to follow the Policy on New Pronouncements.