Revenue Recognition – First 3 Steps

Under the new standard for revenue recognition, the first step is identifying a contract with a customer. There needs to be a deal in place, under which goods and services will be exchanged for consideration. A contract is considered to exist when all of these...

New Revenue Recognition Standard

In 2014, the Financial Accounting Standards Board (FASB) issued new guidance for how to recognize revenue from contracts with customers.  It will bring US Generally Accepted Accounting Principles (GAAP) more in line with International Financial Reporting Standards...

Excess Benefit Transactions

Similar to inurement, nonprofits must also be careful to avoid excess benefit transactions (EBTs). Code § 4958 governs EBTs, and the regulation applies to organizations that are tax-exempt under 501(c)(3) or (c)(4), either currently or at any time in the 5 years...

Gifts in Kind

Not all gifts you receive will be in cash. Donors may also want to contribute goods or services, which are called gifts in kind (GIKs). These are recorded differently than cash contributions, so they merit closer attention. GIKs should be recorded in your financial...