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FASB ASU 2014-09 Revenue Recognition Standards for Nonprofit Entities: Implementing ASC 606 for NFPs

Five-Step Process for Identifying Performance Obligations and Allocating Contract Inflows

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Thursday, December 5, 2019

Recorded event now available

or call 1-800-926-7926

This course will provide auditors and professionals with not-for-profit (NFP) financial reporting responsibilities with a thorough and practical guide to the FASB's Accounting Standards Update (ASU) 2014-09. The presenters will also discuss Revenue from Contracts with Customers (Topic 606) recognition standard, applicable to almost all nonprofits, and prepare accountants to implement its significant changes to financial reporting and disclosures for NFPs.


Advisers to NFPs have faced the most substantive changes to financial reporting in almost a quarter century. The most dramatic alteration for nonprofit entities is the FASB standard 2014-09 governing revenue recognition. In addition to revamping of financial statement presentation issued in ASU No. 2016-14, NFPs have adopted new FASB standards on revenue recognition. The changes are now effective for all nonprofit reporting years after Dec. 15, 2018.

These reporting standards represent an overhaul of how NFPs record and recognize revenue. Supplementing this ASU are clarification updates numbers 2015-14, 2016-08, 2016-10 and 2016-12. NFPs must apply the new guidance in discerning between contributions and exchange transactions to determine when to recognize an inflow as revenue. Advisers to nonprofits must identify any "performance obligations" accompanying inflows and allocate the portion of membership or other payments based on a "stand-alone selling price" for the obligation.

The revenue recognition standards affect public and private entities as well as NFPs. These rules present challenges to auditors of NFPs, who need to understand how an NFP identifies any performance obligations created as part of any contribution transaction.

Listen as our experienced panel provides a thorough and practical guide to the new revenue recognition standards for NFPs to prepare your nonprofit clients for significant changes in financial reporting.



  1. New FASB guidance
  2. Identifying performance obligations in contracts or offerings by NFPs
  3. Five-step approach in ASC 606-10-05-3
  4. Allocating inflows to performance obligations
  5. Implementing the new standards


The panel will discuss these and other noteworthy questions:

  • How do the standards impact the determination of whether an NFP contract offer creates a "performance obligation"?
  • What are the elements of the new "five-step" approach issued in ASC 606-10-05-3 for identifying a "transfer of promised goods or services to customers" in exchange for consideration?
  • How will FASB's guidance on indicators distinguishing contributions from exchange transactions (ASC 958-605-55-8) apply under the new guidance?
  • What areas of judgment does the new revenue recognition standard create for NFP advisers?


Donahue, William
William Donahue, CPA

Senior Manager

As a senior manager in Aronson’s Nonprofit Services Group, Mr. Donahue, CPA, specializes in nonprofit clients. He...  |  Read More

Robins, Mark
Mark Robins


Mr. Robins is a director in Aronson’s Nonprofit & Association Services Group. Prior to focusing his...  |  Read More

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