Source: RSM US LLP.   

WHITE PAPER

In 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) to provide a robust framework and comprehensive principles for addressing revenue recognition issues. Additionally, the guidance on accounting for certain costs related to a contract with a customer in the scope of Topic 606 was codified in ASC 340-40, Other Assets and Deferred Costs – Contracts with Customers.

The guidance in ASC 606 applies to contracts with customers. As such, it only affects the accounting for exchange transactions entered into by not-for-profit organizations. In some cases, determining whether a transaction entered into by a not-for-profit organization represents a contribution or exchange transaction can be complex.

In our white paper, Revenue recognition consideration for not-for-profit organizations, we discuss the following topics:

    • Scope
    • Subscriptions and membership dues
    • Tuition and housing fees
    • Assets and liabilities recognized under the new guidance
    • Disclosure requirements

 

This article was written by RSM US LLP and originally appeared on Sep 14, 2023.
2022 RSM US LLP. All rights reserved.
https://rsmus.com/insights/financial-reporting/changes-to-revenue-recognition-for-not-for-profit-organizations.html

 

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