FASB Proposes Improvements to Not-For-Profit Grant and Contribution Accounting
The Financial Accounting Standards Board (FASB) issued a proposed Accounting Standard Update (ASU) last week in an effort to "clarify and improve the scope and the accounting guidance for contributions received and made, primarily by not-for-profits."
"This is an important step forward in evaluating whether grants should be recorded as contributions or exchanges and distinguishing between conditional and unconditional contributions," said Kelly Frank, Partner at CohnReznick LLP and member of the FASB Not-for-Profit Advisory Committee (NAC). "We advise not-for-profits to take the time now to review this proposed update and reply within the comment period to be sure that their concerns are heard."
The deadline to comment is November 1st.