Skip to main content

Nonprofit Revenue Recognition under ASC 606 and ASC 958-605 – a post implementation view

Over the past two years, most nonprofit organizations had to adopt two new revenue accounting standards that contain highly complex provisions. Accounting Standards Codification (ASC) 606 (exchange transactions) and 958-605 (grants/contributions) contain the rules organizations must follow to now be GAAP compliant. Recent audit activity has indicated that certain nonprofit organizations are still struggling with these concepts and are being hit with adjusting journal entries and internal control deficiencies in their audits. This session will walk participants through the key aspects of the new ASC sections in terms of classifying agreements between exchange and non-exchange and how to practically apply the new definitions around the Five steps to exchange revenue recognition as well as determining the question of conditional vs. unconditional for grants and contribution transactions.