Contributions – Revenue Recognition and Related Matters - NFP Advisory Committee

Date recorded:

At its meeting on June 21, 2016, the Committee members discussed various factors to be considered in a research project on the recognition of revenue from contributions. Currently, Part III permits NFPOs a free choice to apply one of two different methods of recognizing revenues from contributions. The methods result in recognizing revenue from essentially the same transaction in different accounting periods depending on the method chosen. Users that provide resources have regularly encouraged the AcSB to enhance comparability among NFPOs by adopting a single method of revenue recognition for contributions. The Committee agreed to suggest to the AcSB that a research project on the recognition of revenue from contributions should be done following the Accounting Standards Improvements Project.

Review the summary of discussions on the AcSB's Web site.

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