As a not-for-profit, it’s important that you familiarize yourself with an upcoming pronouncement affecting how you will recognize future revenues of your organization. The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 606, which deals with revenue recognition related to contracts with customers. This will be applicable for fiscal year-ends beginning after December 15, 2018, for example, December 31, 2019, and June 30, 2020.
Specifically, the pronouncement hits on contracts with customers or exchange transactions. If you think you don’t technically have contracts with customers or exchange transactions, think again! As Not-for-Profit Practice leader Krista Gardner outlines in this 3-minute video, the FASB definition of exchange transactions covers many situations. Watch now to find out what some examples of exchange transactions could be that apply to your organization.
For a deeper dive, join Krista on December 5 as she reviews this accounting pronouncement in more detail and discusses FASB’s five-step process to identifying what revenue streams of your organization may be affected and how to prepare your organization for implementing these changes.