On June 3, 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-05, bringing relief for both for-profit and nonprofit entities. The standard allows entities who have not yet issued their financial statements to DELAY the implementation of ASU 2014-09, Revenue Recognition from Contracts with Customers (ASC 606).
Following last month’s proposal to defer the effective date of two standards for private companies and nonprofit organizations, the Financial Accounting Standards Board (FASB) voted to delay the effective dates of revenue recognition and leases standards on May 20. The standards extension comes as a response to complications caused by the coronavirus pandemic.
On April 14, the Governmental Accounting Standards Board (GASB) released a statement proposing the postponement of the effective dates of certain accounting and financial reporting requirements set to go into effect soon.
Smith Schafer Audit Senior Manager, Adam Kellerhals, presented a live webinar discussing the new accounting standards as it relates to nonprofit organizations.
Grants are a big part of the not-for-profit world. And yet, according to some experts, fewer than ten per cent of grant proposals are ever funded.
Nonprofit organizations will need to include a breakdown of expenses by their natural expense classification and their function for years beginning after December 15, 2017.