When should you report grant and contribution revenues?

Description

Abstract: When the FASB’s new revenue recognition standard was released in 2014, it caused quite a stir across industries. But the standard applies only to revenue from “exchange transactions,” also known as reciprocal transactions. Contributions to nonprofits are nonreciprocal, and your grants may be, too — meaning different rules apply. This article explains when you should report grant and contribution revenues under ASU 2014-09. A sidebar reports on future FASB guidance that will clarify how and when to recognize grant and contribution revenue when receiving government funds.