SEC Guidance Rescission - Revenue Recognition and Derivatives and Hedging

FASB Accounting Standards Updates

Published January 1st, 2025

Detected April 3rd, 2026

Summary

FASB added ASU 2016-11 to its standards listing page. This update rescinds SEC guidance related to Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815) that was superseded by Accounting Standards Updates 2014-09 and 2014-16. The rescission reflects staff announcements made at the March 3, 2016 EITF Meeting.

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What changed

FASB added ASU 2016-11 — Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance to its Accounting Standards Updates page. This ASU formally rescinds SEC Staff Accounting Bulletins and other guidance that became redundant or conflicting following the issuance of ASC 2014-09 (Revenue from Contracts with Customers) and ASC 2014-16 (Derivatives and Hedging). The update codifies the EITF's March 2016 staff announcements formalizing the removal of superseded SEC guidance.

Entities preparing financial statements under US GAAP should note that any prior reliance on the rescinded SEC guidance is no longer valid. Companies should ensure their revenue recognition and derivatives accounting policies align with current ASC topics and the rescinded SEC guidance has been removed from their accounting procedures. This is an informational update confirming the completion of a standards maintenance activity.

What to do next

Review current revenue recognition accounting policies to ensure alignment with ASC Topic 606 (superseding Topic 605)
Review derivatives and hedging accounting policies for alignment with current ASC Topic 815 guidance
Remove any references to rescinded SEC Staff Accounting Bulletins from accounting policy documentation

Source document (simplified)

Page: FASB Accounting Standards Updates
Change summary: FASB added ASU 2016-11 covering Revenue Recognition and Derivatives and Hedging: Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update).
[INSERTS] Update 2016-11 —Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update)

Page context:
| ##### Issued In 2025

Update 2025-12 —Codification Improvements

Update 2025-11 —Interim Reporting (Topic 270): Narrow-Scope Improvements

Update 2025-10 —Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities

Update 2025-09 —Derivatives and Hedging (Topic 815): Hedge Accounting Improvements

Update 2025-08 —Financial Instruments—Credit Losses (Topic 326): Purchased Loans

Update 2025-07 —Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract

Update 2025-06 —Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software

[Update 2025-05](https://www.fasb.org/Page/Document?pdf=ASU%25202025-05.pdf&title=Accounting%2520Standards%2520Update%25202025-05%25E2%2580%2594Financial%2520Instruments%25E2%2580%2594Credit%2520Losses%2520(Topic%2520326):%2520Measurement%2520of%2520Credit%2520Losses%2520for%25...