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2016

June 16, 2016 — FASB Discusses Project on Revenue Recognition of Grants and Contracts by Not-for-Profit Entities

Accounting Journal Entry
June 16, 2016

FASB Discusses Project on Revenue Recognition of Grants and Contracts by Not-for-Profit Entities

At its meeting yesterday, the FASB discussed its new project to clarify the existing guidance on revenue recognition of grants and similar contracts by not-for-profit entities (NFPs). The following two issues will be addressed in the project:
Issue 1 — Characterizing grants and similar contracts with governmental agencies and others as (i) reciprocal transactions (exchanges) or (ii) nonreciprocal transactions (contributions).
Issue 2 — Distinguishing between conditions and restrictions for nonreciprocal transactions.