Companies have some new guidance to follow to sort out how to account for contributions they receive and make that are not clearly governed by revenue recognition rules.
The Financial Accounting Standards Board issued Accounting Standards Update No. 2018-08 to clarify how to account for contributions of cash or assets that are typically made by not-for-profit organizations and business enterprises. The amendments provide a framework for determining whether a transaction should be accounted for as a contribution or an exchange.
