June NPFM Meeting: Changes to Revenue Recognition

Over the past several years, the Financial Accounting Standards Board (FASB) has issued multiple landmark accounting standards impacting not-for-profit entities, including the following revenue recognition standards:

  • ASC 606, Revenue from Contracts with Customers (Topic 606) (originally issued as ASU 2014-09)
  • ASU 2018-08, Not-for-Profit Entities (Topic 958), Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made

ASC 606 provides a new framework for revenue recognition for both for-profit and not-for-profits entities. However, not-for-profit entities will need to assess their revenue streams to determine whether their revenue from grants, contracts, and contributions is qualified as an exchange transaction, or whether the revenue is a non-exchange transaction and therefore outside of the scope of ASC 606.  ASU 2018-08 clarifies the determination of  such transactions.  During this interactive session, participants will discuss how to evaluate their revenue streams in accordance with the standards, with consideration given to how these standards will impact their revenue recognition policies and financial statement disclosures.

Presenters from CliftonLarsonAllen, LLC:

  • Jennifer Olivier, CPA:  Jen has over 12 years of experience providing auditing, accounting, consulting, and tax services to nonprofit organizations including, healthcare, social service organizations, associations, health and human services, and foundations. Jen also has extensive experience in single audit and yellow book compliance.
  • Melissa Murphy, CPA: Melissa has over four years of experience auditing, accounting and consulting with an emphasis on nonprofit organizations, including those with Single Audit and Yellow Book compliance requirements. She has worked with many nonprofit organizations including human service organizations, healthcare, community based and associations. Melissa also has a strong background in 990 preparation and compliance.