How To Develop Your Skill For Great Success And Happiness Including Become CPA? | Additional special tips From Admin
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FASB clarifies accounting for grants and contributions
FASB issued an Accounting Standards Update (ASU) clarifying when a transfer of cash or other assets received and made, primarily by not–for–profits, qualifies as a contribution or an exchange transaction.
The ASU, which amends FASB ASC Topic 958, Not-for-Profit Entities, updates current guidance about whether a transfer of assets — or the reduction, settlement, or cancellation of liabilities — should be accounted for as a contribution or an exchange transaction. Specifically, the ASU establishes criteria for determining whether the asset provider is receiving commensurate value in return for those assets. That determination then dictates whether the organization follows contribution guidance or exchange transaction guidance found in the revenue recognition and other applicable standards.
The new guidance is expected to be particularly helpful in the accounting for grants and similar contracts awarded by governments to not–for–profits. FASB proposed the changes last year after receiving feedback that not–for–profits had run into difficulty deciding whether to characterize grants as exchanges or contributions.
The ASU also provides an enhanced framework for determining whether a contribution is conditional or unconditional, and for distinguishing a donor–imposed condition from a donor–imposed restriction.
The new standard does not apply to transfers of assets from governments to businesses. The update includes extensive instructions on effective dates, which range from June 15, 2018, to Dec. 15, 2019.
In addition, FASB:
Research & References of FASB clarifies accounting for grants and contributions|A&C Accounting And Tax Services
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A note for you if you pursue CPA licence, KEEP PRACTICE with the MANY WONDER HELPS I showed you. Make sure to check your works after solving simulations. If a Cashflow statement or your consolidation statement is balanced, you know you pass right after sitting for the exams. I hope my information are great and helpful. Implement them. They worked for me. Hey.... turn gray hair to black also guys. Do not forget HEALTH?
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