Nonprofit Alert: Improved Guidance on Grant and Contribution AccountingBy Sibi B. Thomas | June 22, 2018
The Financial Accounting Standards Board (FASB) issued a new Accounting Standards Update (ASU) number 2018-08 on June 21, 2018 that clarifies the current accounting guidance on contributions made and received by nonprofit organizations and businesses.
The update is designed to provide consistency in the way organizations report contributions of cash and other assets, particularly in the area of grants received by nonprofits from governments. Specifically, the ASU clarifies how organizations can:
- Determine whether a transfer of assets is a contribution or exchange transaction
- Decide whether a contribution is conditional or unconditional
- Distinguish between a donor-imposed condition and a donor-imposed restriction
These clarifications will have a significant impact on the timing and guidance used for revenue recognition and other standards. To learn more about what this ASU means for your nonprofit’s financial reporting, contact a member of our Nonprofit, Government & Healthcare Group.
About Sibi B. Thomas
Sibi Thomas is a Partner within the Nonprofit, Government & Healthcare Group at Marks Paneth LLP, with over 14 years of extensive accounting, auditing, tax and consulting experience. He is also a member of the firm’s Partner Leadership Committee. Mr. Thomas was recognized by the CPA Practice Advisor as a 40 under 40 honoree for leading the accounting profession. Mr. Thomas plans, coordinates and conducts audits of nonprofit organizations including: large social service organizations, third party funded organizations, educational... READ MORE +