The time has come for all remaining organizations to implement the Financial Accounting Standards Board’s (FASB) new revenue recognition standards (Topic 606) that originated in May 2014. All calendar year end organizations must implement the new standards for their 2019 year. All fiscal year end nonprofits must adopt them for their 2020 fiscal year end.
What has changed with FASB’s new revenue recognition standards?
Everything has changed with FASB’s new revenue recognition standards. In fact, the overhaul in the standards is so significant, nonprofits cried foul that it would be too difficult, costly and untimely to implement. The FASB didn’t let nonprofits off the hook, but instead, issued clarifying guidance to push more transactions out of exchange transaction accounting (Topic 606) and into contribution accounting (Topic 958).
If your exempt organization has not had training on these changes, now is the time to seek education so there will not be unanticipated revenue and budget variances.
To understand how the changes will affect your organization, please review the revenue recognition discovery phase questionnaire on the impact on the nonprofit industry.*
Have questions? Talk to a nonprofit specialist today.
*As a member of RSM US Alliance, we are pleased to share this content with you. RSM US Alliance is a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Source: RSM US LLP. Used with permission as a member of RSM US Alliance.