As we enter the final stretch of 2020, not-for-profits are grappling with two new contribution standards. The first standard is ASU No. 2018-08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. While this standard was issued in 2018, many not-for-profits are still implementing its guidance related to distinguishing contributions from exchange transactions and distinguishing conditional contributions from unconditional contributions. Even not-for-profits that have already implemented ASU No. 2018-08 are perhaps finding themselves applying the standard in unexpected areas such as accounting for PPP loans.
The second new contribution standard is ASU No. 2020-07, Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets. Issued in September 2020, this new standard will change how gifts-in-kind (e.g., fixed assets, land, buildings, the use of assets, food, clothing, pharmaceuticals, services, etc.) are presented in the statement of activities. ASU No. 2020-07 also adds some significant disclosures related to gifts-in-kind.
Running short on time to give to learning the new contribution standards? Let us help you out! Sign up today for Two New Contribution Standards for Not-For-Profits (TNCS).
Charlie Blanton, CPA is the Senior Director of Governmental and Nonprofit Content for Surgent CPE, where he authors Surgent’s government and not-for-profit CPE courses and is a frequent webinar instructor.