New Revenue Recognition Model to Affect Nonprofits
In most ways, the new revenue recognition model replaces all existing revenue recognition guidance. Newly disclosed qualitative and quantitative requirements about revenue and contracts with customers will have an impact on almost all entities, including nonprofit organizations. This article discusses additional impacts to all entities. For nonpublic entities, which includes most nonprofits, implementation will not be effective until 2018, or more specifically, for annual reporting periods beginning after December 15, 2017. However, it will be important to start thinking now about how this new standard will affect you.