Accounting Journal Entry
June 16, 2016
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.