At its meeting on May 18, 2022, the AcSB discussed the Exposure Draft proposals and considered input from its Not-for-Profit Advisory Committee relating to the scope of a new standard; definitions of key terms; and revenue recognition for unrestricted contributions, restricted contributions, and capital asset contributions. Considering the Committee’s feedback, the AcSB discussed the specific factors to include in the guidance for determining whether a contribution is externally restricted and when to recognize revenue from restricted contributions. The Board considered the current definition of a liability in Section 1001, Financial Statement Concepts for Not-for-Profit Organizations, and how it interacts with the draft proposals. With regard to capital asset contributions, the AcSB discussed options for determining when to recognize revenue, and tentatively decided that they should be accounted for consistently with other types of restricted contributions. The AcSB will continue discussing the exposure draft proposals at its June 2022 meeting. The Board plans to issue an Exposure Draft in the first quarter of 2023.

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