Revenue Recognition of Grants and Contracts by Not-for-Profit Entities
Posted on Wednesday, July 26, 2017
The Financial Accounting and Standards Board (FASB) has taken on a new project “to improve and clarify existing guidance on revenue recognition of grants and contracts by not-for-profit entities.” There are two primary issues FASB is looking at.
- Grants and contracts with government agencies
- Distinguishing between conditional and unconditional contributions
There appears to be inconsistency in applying the current standards, and the FASB hopes to provide additional guidance in this new project. The project was added to the FASB’s agenda in April 2016, and an exposure draft is expected to be released in August 2017.
Posted by: Carrie Minnich, CPA
Posted in Mission Minded Nonprofits
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