Contributions – Revenue Recognition and Related Matters – AcSB

Date recorded:

At its meeting on December 14-15, 2022, the AcSB discussed the results of field-testing draft proposals relating to the recognition of revenue from contributions. Generally, respondents reached the conclusions that the Board expected when developing the field-testing scenarios. However, the Board discussed some changes to clarify the proposed guidance based on the results. The Board also discussed illustrative examples to be included in the Exposure Draft, taking into consideration comments received from field-testing participants. The AcSB discussed a revised draft of the Exposure Draft, including the basis for conclusions and proposals related to: (i) presentation and disclosure of contribution revenue; (ii) definition, presentation, and disclosure of net investment income; (iii) definition and disclosure of endowments; (iv) presentation of net assets; and (v) disclosure of restricted cash. The AcSB will discuss the revised draft of the Exposure Draft at its January 2023 meeting. The Board will also consider the results of a fatal flaw review of the Exposure Draft to be completed by its Not-for-Profit Advisory Committee. The Board plans to issue the Exposure Draft in March 2023.

Review the Executive Summary on the AcSB's Web site.

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