Clarified Revenue Recognition Guidance for Not-for-Profit Organizations
Revenue recognition changes have been in the works within the guidelines of ASC Topic 606, Revenue from Contracts with Customers. Contributions revenue, however, was listed as an exception to the new revenue recognition standard. In 2018, FASB issued ASU 2018-08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made.
Many not-for-profits, depending on their revenue sources, have both exchange and contribution revenue and will therefore be subject to both standards. FASB noted that difficulty in characterizing grants and contracts with resource providers as either exchange transactions or contributions has led to diversity in practice in the not-for-profit world. Additionally, distinguishing between donor-imposed conditions and donor-imposed restrictions has caused further diversity.
Join us for a live webinar from 11 a.m. - 12 p.m. CT on Thursday, May 16, facilitated by Audit Principal Katie Zahner and presented by Audit Principal Ellen Norrenberns. The topics covered will include:
- Changing your mindset while accounting for grants and contracts in not-for-profit organizations
- Reciprocal vs. nonreciprocal transactions (exchange vs. contribution)
- Restricted vs. conditional contributions
- Conditional vs. unconditional contributions
- Implementation – financial statement presentation and disclosure
This webinar qualifies for 1 Continuing Professional Education (CPE) credit.