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FASB staff issues Q&As on the application of the limited discretion indicator and cost-sharing provisions for not-for-profit entities

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Jun 07, 2019

The FASB staff has issued a Q&A document, “Subtopic 958-605: Application of the Limited Discretion Indicator and Accounting for Cost-Sharing Provisions in a Grant Agreement.”

The Q&As discuss how the limited discretion indicator should be “applied when determining whether a budget and related stipulations within a grant agreement are deemed to be a barrier to entitlement”; how an entity should “determine whether a cost-sharing provision in an agreement is a barrier to entitlement”; and whether “cost-sharing provisions in an agreement [should] be analogized to matching provisions when determining how to account for the timing and pattern of revenue recognition.”

For more information, see the staff Q&A on the FASB’s Web site.

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