Revenue Recognition: Independent School Tuition and Fees Under FASB ASC 606
A new white paper from CLA can help CFOs, controllers, business managers, and others in independent school finance prepare for implementation of the Financial Accounting Standards Board’s (FASB) revenue recognition standard, Accounting Standards Codification (ASC 606): Revenue from Contracts with Customers. The document details how and when to recognize revenue from one significant source: tuition and fees.
Download White Paper: Independent School Revenue Recognition for Tuition and Fees Under FASB ASC 606
Titled Independent School Revenue Recognition for Tuition and Fees Under FASB ASC 606, the white paper answers questions and addresses challenges specific to private schools. It uses two examples to illustrate how the FASB guidance would apply in different scenarios. The statement of financial position, statement of activities, and disclosures in the school financial statement are also discussed.
ASC 606 is effective for nonpublic entities for annual reporting periods beginning after December 15, 2018 (e.g., as of and for the year ending June 30, 2020).