The Role and Consequences of Practical Expedients in the
Accounting Standards Update (ASU)
Ashwinpaul C. Sondhi, Ph. D.
The proposed accounting standards update on Revenue provides several practical expedients (PE) in the application of the guidance. The FASB and the IASB provided practical expedients to simplify compliance and mitigate the need for systems and operational modifications and amendments in response to changes in revenue guidance under the proposed ASU. I have identified and discuss four types of practical expedients. I have included comments on the expected consequences of these practical expedients.