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Page | 47 ASC 606-10-65 Revenue Recognition Transition and Eff ective Date for ASU 2014-09, Revenue from Contracts with Customers, and Related ASU's 2016-08, 2016-10, 2016-12, 2016-20, 2017-05 Note: Written primarily from the perspective of a non-public business entity. EFFECTIVE DATE The eff ective date for implementation is for annual reporting periods beginning after December 15, 2018. For most entities, this means a calendar year beginning January 1, 2019 and ending December 31, 2019. If the entity presents interim fi nancial statements, the eff ective date is for interim periods with annual reporting periods beginning after December 15, 2019. The date of the initial application of the new standards is the start of the applicable reporting period (January 1 for a calendar year entity). For most entities, this will be January 1, 2019. EARLY IMPLEMENTATION An entity may elect to early adopt for annual reporting periods beginning after December 15, 2016 (calendar year 2017), including interim periods within calendar year 2017. Or, an entity may elect to early adopt for periods beginning after December 15, 2016, and for interim periods within the next annual reporting period after the year of adoption. Public business entities, certain not-for-profi t entities, and employee benefi t plans that fi le with the SEC must adopt for annual reporting periods beginning after December 15, 2017, with early adoption permitted for periods beginning after December 15, 2016. Practical Application Note: Unless there is a compelling reason to do so, we do not recommend early adoption. There is no advantage to early adoption for most contractors. We would advise to use the time available until the required adoption date to prepare for adoption of the new standard for calendar year 2019. Of course, newly formed entities are encouraged to early adopt. Joint venture entities that will be consolidated by a public company need to coordinate the adoption date with their related entities. Transition Method >

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