After a lengthy deliberation and public comment process, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued “Revenue from Contracts with Customers” (ASC 606) in May of 2014. The standard is intended to shift the previous rule-based approach that applied to specific business types to a universally applicable principal-based approach. The current effective date for most nonprofits is for fiscal years beginning after December 15, 2018, or 2019 for calendar year entities.
So how will this new standard impact your nonprofit? Knowing the guidance requires an overhaul to the existing accounting standards and a cumbersome transition …read more
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