Nonprofit Accounting Guidance for Contributions: FASB ASU 2018-08 is brought to you by Lorman
Understand the differences between contributions and exchange transactions.
With the implementation of ASU 2018-08 the interpretation of an exchange transaction and criteria for conditions have changed. As a result, many organizations have been tasked reevaluating agreements in order to recognize and classify exchange revenue and contributions. This topic will help you understand the differences between contributions and exchange transactions. You will further be able to identify if a contribution is donor restricted and if a donor-imposed condition exists. Finally, you will be able to correctly account for and present contributions in your financial statements and disclosures.