At its meeting on July 5, 2018, the Not-for-Profit Advisory Committee received an overview of the activities completed for the Contributions project to date. The staff informed the Committee that the AcSB plans to issue a consultation paper. The staff noted that:

1. the consultation paper will include the Board’s preliminary views on the issues related to the accounting for contributions and how those issues could be addressed;
2. the consultation paper is not an exposure draft. Rather, its purpose is to obtain input from not-for-profit stakeholders on alternatives that the Board is considering on the accounting for contributions that NFPOs receive; and
3. once stakeholder input has been received and analyzed and the Committee’s advice has been sought, the Board will be in a position to determine whether amendments to the contributions standards are necessary. Any proposed amendments to existing standards would then be exposed for comment.

The Committee discussed one proposed alternative the staff proposed for the Board’s consideration: to account for the contribution based on its characteristics. The staff will receive further input from the Committee on additional types of contributions commonly seen in practice and their characteristics. This information will be used to develop further the proposed alternative for the Board’s consideration. The Committee agreed that any proposed alternative to account for restricted contributions should result in financial statements that are helpful to users. The Committee will continue to discuss proposed alternatives at its next meeting.

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

At its meeting on July 5, 2018, the Not-for-Profit Advisory Committee discussed the current draft of the Exposure Draft, “Agriculture,” and the next steps for the Agriculture project. The Committee discussed that, although not common, NFPOs do engage in activities and events related to agricultural production. Many agricultural producers currently apply the scope exemption in Section 3031, Inventories, to measure living animals and plants (biological assets) and the harvested product of biological assets (agricultural produce) at net realizable value rather than at cost. The proposals introduce conditions that must be met for agricultural inventories to be measured using the net realizable value model, which would limit the circumstances when agricultural inventories can be measured at net realizable value. These conditions may result in a change in practice for some agricultural producers. The AcSB plans to consult with stakeholders to discuss the Exposure Draft in September, October and November 2018. Comments on the Exposure Draft are due by October 31, 2018.

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