New 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

Conducted on Tuesday, May 22, 2018

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will provide auditors and professionals with not-for-profit (NFP) financial reporting responsibilities with a thorough and practical guide to the FASB’s new 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 face the most substantive changes to financial reporting in almost a quarter century. The most dramatic alteration for nonprofit entities is the new FASB standard 2014-09 governing revenue recognition. In addition to revamping of financial statement presentation issued in ASU No. 2016-14, NFPs must adopt new FASB standards on revenue recognition. The changes apply to all nonprofits’ reporting years after Dec. 15, 2018, so NFPs must implement the changes now to ensure compliance with the new standard.

The new reporting standards represent an overhaul of how NFPs record and recognize revenue. 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.

While the new standard offers some clarity in distinguishing between contributions and exchange transactions, FASB acknowledges that the classification will be highly dependent on the adviser’s judgment. The new rules thus 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 does the new standard impact the determination of whether an NFP contract offering 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 current 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?


Arnone, Joseph
Joseph A. Arnone, CPA, CGMA

Senior Manager

Mr. Arnone, CPA, CGMA, is a senior audit manager at CohnReznick. He is a member in the Firm’s Not-for-Profit and...  |  Read More

Pentin, Christopher
Christopher J. Pentin, CPA
Audit Senior Manager
Grant Thornton

Mr. Pentin has 12 years' experience in public accounting, effectively designing, coordinating and executing...  |  Read More

Venkat, Swami
Swami Venkat, CPA, CISA, CFE, ACA


Mr. Venkat is a partner with CohnReznick Advisory specializing in governance, risk, and compliance. He has more than 10...  |  Read More

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