Revenue Recognition

 

Accounting for Government Grants and Contracts

Nonprofits have struggled over the years on how to account for revenue from government grants and contracts and whether they should be considered contributions (non-exchange) or exchange transactions. The accounting differs depending on how the revenue is categorized and with the new Revenue Recognition Standard (ASU 2014-09) identifying the correct category will become even more important.  The Financial Accounting Standards Board (FASB) recently issued an exposure draft which helps clarify the decision process and will assist with the evaluation, and you can read that here.

In addition, there is a Journal of Accountancy article on the topic that can be found here and a white paper produced by RSM US that can be downloaded by clicking here.

 

Specialized Healthcare Resources

There are some unique aspects concerning the new revenue recognition standard for those working in healthcare. Hayashi Wayland is an alliance member of RSM and they have provided some specialized training available in this area. Check out this link to find valuable resources.