Not-for-Profit Entities and the New Revenue Recognition Standard

Richard A. Turpen, PhD, CPA, CFE

FASB's new revenue recognition standard will become effective for most not-for-profit (NFP) entities in 2019. Although this date may seem distant, the new standard will require a considerable transition effort in advance. The author focuses on the key accounting and auditing concerns that NFPs must address under the new standard, including a hypothetical example that illustrates some of the unique complexities the standard presents for the NFP environment and a discussion of significant challenges the new requirements are likely to pose for NFP auditors.