Not-for-Profit Entities Revenue Recognition Task Force 


AICPA Revenue Recognition Task Forces are charged with developing revenue recognition implementation issues that will provide helpful hints and illustrative examples for how to apply the new Revenue Recognition Standard.

Task Force Members:

  • Stuart Miller, Crowe (Chair)
  • Elaine Allen, Ernst & Young LLP
  • Cathy Clarke, Clifton Larson Allen
  • John Griffin, AARP
  • Jennifer Hoffman, Grant Thorton
  • Neena Masih, BDO LLP
  • John Mattie, PricewaterhouseCoopers LLP
  • Sue Menditto, NACUBO
  • Mig Murphy Sistrom, Mig Murphy Sistrom CPA
  • Amanda Nelson, KPMG LLP
  • Susan Stewart, McGladrey LLP
Staff Contact: Chris Cole, ccole@aicpa.org

IDENTIFIED REVENUE RECOGNITION IMPLEMENTATION ISSUES

Below is a list of potential revenue recognition implementation issues identified by the Not-for-Profit Entities Revenue Recognition Task Force. The list will be updated as the task force continues its discussions. Full revenue recognition implementation issues will be posted below for informal comments after review by the AICPA Financial Reporting Executive Committee (FinREC).

The Task Force has removed and/or addressed selected implementation issues included in the original plan. They have retained the original issue #s for the table below.

Issue # Description of Implementation Issue Status
2 Tuition and Housing Revenue
Tuition and housing revenue for not for profit higher education institutions. This implementation issue will discuss considerations needed to determine the transaction price and when to recognize revenue for tuition and housing.
Out for Exposure until September 1, 2016
3 Contributions
A technical clarification was submitted to FASB Staff, recommending that the FASB clarify the application of FASB ASC 606 by adding language in FASB ASC 606-10-15 that specifically excludes contributions from the scope of FASB ASC 606. TRG agenda reference #34: March 2015 Meeting – Summary of Issues Discussed and Next Steps Paragraph 40: TRG members discussed whether contributions are in the scope of the new revenue recognition standard. TRG members agreed with the staff view that contributions are not in the scope of the new standard and that the standard includes adequate guidance to come to this conclusion.
Out for Exposure until September 1, 2016
4 Grants Referred to FASB
5 Subscriptions and Membership Dues
This implementation issue will discuss how NFP organizations should account for Membership Dues, Life-time Membership Dues, Subscription Revenue and Life-time Subscriptions.
Submitted to AICPA RRWG
6
Bifurcation of Transactions Between Contribution and Exchange Components
This implementation issue will address the fact that amendments from ASU 2014-09 do not affect the method for a not-for-profit entity to bifurcate transactions received that are in part a contribution and in part an exchange transaction. Examples of transactions that may be in part a contribution and in part an exchange transaction include membership dues, bargain purchases, certain grants, naming opportunities, and donor status transactions.
Out for Exposure until September 1, 2016


FEEDBACK REQUESTED

Draft Revenue Recognition Implementation Issues included for informal comment, when available, will be listed below.

Respondents should submit any comments including the implementation issue number to ccole@aicpa.org by the dates noted below:

Issue # Comment Due Date
11-2 - Tuition and Housing Revenue September 1, 2016
11-3 - Contributions September 1, 2016
11-6 - Bifurcation of Transactions Between Contribution and Exchange Components September 1, 2016


The Not-for-Profit Entities Revenue Recognition Task Force and the Not-for-Profit Entities Expert Panel recommend the following AICPA products for current revenue recognition issues:



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