Get ready for the new revenue recognition rules
Abstract: The new accounting rules for recognizing revenue will take effect for most not-for-profits (except for those with public bond issues) at the beginning of their next fiscal year. While the total revenue recognized over time won’t change, nonprofits should understand how the timing and information they must share will — and how to prepare for the change. This article reviews the basic requirements of ASU 2014-09, Revenue from Contracts with Customers (Topic 606). A sidebar highlights anticipated guidance about the proper accounting for contributions.