Article
What not-for-profits need to know about FASB deferrals
June 10, 2020
Revenue from Contracts with Customers (Topic 606)
The effective date for a not-for-profit that has issued, or is a conduit bond obligor for, securities that are traded, listed or quoted on an exchange or an over-the-counter market is not affected by the amendments in this ASU.
Additionally, FASB decided to retain the effective date of ASU No. 2018-08, Not-for-Profit Entities (Topic 958) Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made.
Leases (Topic 842)
The FASB has provided important clarification for public not-for-profits (defined as not-for-profits that have issued or are conduit obligors for securities that are traded, listed or quoted on an exchange or over-the-counter market) in the Basis for Conclusions section of the ASU.
Many public not-for-profit organizations are required to post interim financial information or interim financial statements in the Electronic Municipal Market Access (EMMA) system. A public not-for-profit is eligible for the deferral if it has posted only interim financial information in EMMA. Conversely, a public not-for-profit is ineligible for the deferral if it has posted interim or annual U. S. GAAP-compliant financial statements in EMMA because that would be an issuance of financial statements. While financial information is a broad term that can vary widely in content from an earnings release to a balance sheet and income statement, U. S. GAAP-compliant financial statements is a widely understood term and includes a full set of disclosures.
For more information on this topic, or to learn how Baker Tilly not-for-profit accounting specialists can help, contact our team.
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