August 8th, 2017 New Guidance for Accounting for Grants and Contributions By Linda Marie Pearson, CPA, CFE FASB has proposed an Accounting Standards Update to the FASB Accounting Standards Codification (ASC or GAAP) related to recording contributions received and contributions made. The purpose of the proposed change is to address the diversity in practice when applying current GAAP to grants and similar contracts. The proposed ASU is to assist entities in evaluating whether transactions should be accounted for as contributions (nonreciprocal transactions) or as exchange (reciprocal) transactions, as well as distinguishing between conditional and unconditional contributions. Here is what you need to know about the change: For move than 16 years, I have been helping my not-for-profit clients interpret and apply U.S. GAAP in applying revenue recognition to their contracts and grants. Over this time, I have trained clients and developed tools to assist management in becoming self-sufficient in making these determinations. If you need assistance and would like to discuss further, please contact me at 401-752-0566 or email@example.com.