Audit and Accounting Guide Depository and Lending Institutions, 2nd Edition

Chapter 11 Real Estate Investments, Real Estate Owned, and Other Foreclosed Assets

FASB Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers

FASB ASC 606 is effective for annual reporting periods of a public business entity, a not-for-profit entity that 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, and an employee benefit plan that files or furnishes financial statements with or to the SEC beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period.

For all other entities, FASB ASC 606 is effective for annual reporting periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. Other entities may elect to adopt the standard earlier, however, only as of either

• an annual reporting period beginning after December 15, 2016, including interim periods within that reporting period, or
• an annual reporting period beginning after December 15, 2016, and interim periods within annual periods beginning one year after the annual reporting period in which an entity first applies the “Pending Content” that links to FASB ASC 606-10-65-1.

FASB ASC 606 provides a framework for revenue recognition and supersedes or amends ...