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Implementing ASU 2018-08 for Contributions Received and Made

Reciprocal vs. Nonreciprocal, Conditional vs. Unconditional and Required Disclosures

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

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Conducted on Wednesday, August 21, 2019

Recorded event now available

or call 1-800-926-7926

This course will guide not-for-profit (NFP) advisers and businesses that receive or make contributions subject to ASU 2018-08 through its reporting requirements. The panel will discuss distinguishing between contributions and exchanges, conditional vs. nonconditional contributions, and implementing the required modifications.


New revenue recognition standards created questions about how not-for-profit (NFP) recipients and donors should record asset transfers. In June 2018, the FASB issued ASU 2018-08, Not-for-Profit Entities, "Clarifying the Scope and the Accounting Guidance for Contributions Received and Made." With implementation dates both past and upcoming, (applicable to annual periods beginning after June 15, 2018, or beginning after Dec. 15, 2018, depending on whether the entity is a resource recipient or resource provider) understanding these changes is critical.

This ASU outlines how to determine whether grants are accounted for as exchange transactions subject to ASC 606 or contributions; and if a contribution, whether the transaction is conditional or unconditional.

There is a decision tree flow-chart included in the ASU to assist entities in classifying transactions. Although its issuance is a clarification, determining the classification of receipts isn't always clear. Sometimes the recipient receives a pass-through award; other times there are performance obligations tied to receipts. This update has a significant impact on the classification of many government grants.

Listen as our panel of experts explains the details of ASU 2018-08, including how to correctly classify, record, and disclose contributions made and received under this update.



  1. Overview
  2. Effective dates
  3. Reciprocal (exchange) transactions
  4. Nonreciprocal (contribution) transactions
    1. Conditional transactions
    2. Nonconditional transactions
  5. Application


The panel will review these and other noteworthy issues:

  • The effective dates of ASU 2018-08
  • Financial statement reporting under ASU 2018-08
  • Determining whether a contribution is conditional or unconditional
  • Determining whether a transaction is reciprocal or nonreciprocal
  • Implementing required disclosures


Meringolo, Christopher
Christopher Meringolo


Mr. Meringolo is a Manager in the Not-for-Profit Services Group. His expertise includes assisting in the planning and...  |  Read More

Mo, Jimmy
Jimmy Mo


Mr. Mo leads the Not-for-Profit Services Group in Pennsylvania. He has more than 15 years of extensive auditing...  |  Read More

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