If you’re a nonprofit, be prepared for some potential major changes to the way you recognize revenue. Performing this new analysis will be crucial to understanding how to recognize revenue from your various funding sources.
The Financial Accounting Standards Board (FASB) voted Wednesday, May 20, 2020, to give private companies and nonprofit organizations that have not yet issued their financial statements an extra year to comply with the revenue recognition and leases standards. Why did FASB extend the effective date? The deferred implementation was based on feedback the FASB received[ … ]
The Financial Accounting Standards Board (FASB) has issued a new Accounting Standards Update, ASC 606: Revenue from Contracts with Customers,that addresses revenue recognition under U.S. Generally Accepted Accounting Principles. The new rules are an attempt to standardize the revenue recognition process across different industries and geographic locations. The Standard was the result of a multi-year[ … ]