Contributions – Revenue Recognition and Related Matters – AcSB

Date recorded:

At its meeting on March 8-9, 2023, the AcSB  discussed feedback received from its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee on how to address stakeholders’ concerns with recent amendments to Section 3400, Revenue, related to accounting for upfront non-refundable fees or payments. Stakeholders have indicated that the amendments sometimes result in information that is not decision-useful, particularly for entities collecting non-refundable initiation or life membership fees. In November 2022, the Board deferred the effective date of these amendments until January 1, 2025, with earlier application permitted. At this meeting, the AcSB tentatively decided to issue an Exposure Draft to indefinitely defer the effective date of these amendments, with early application permitted, until the project on Evaluating the Preface is complete. The Board also tentatively decided to propose a new disclosure requirement in this Exposure Draft for entities recognizing non-refundable initiation and life membership fees in revenue up front. The Board will discuss these proposed solutions with its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committees at their meetings in May.

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

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