No More Waiting: Revenue Recognition is Here
Cathy Clarke, CLA’s chief assurance officer, is once again urging associations, membership organizations, and other nonprofits to start taking action on the Financial Accounting Standard Board’s (FASB) guidance on revenue recognition. Her presentation at CLA’s Sixth Annual National Association Conference — captured here in the CLA Talks video clip, Action Plan for Revenue Recognition — makes it clear that time is running out for nonprofits of all types.
“If you are expecting your auditors to help you they are not going to have time later,” Clarke said at the event in Chicago. “If your fiscal year ends December 31, 2019, pick up the phone when you get back to your office and get the conversation started.”
The urgency arises from the effective date for the ASU 2014-09: for years beginning on or after December 15, 2018, the standards must be implemented for December 31, 2019, or June 30, 2020, year ends.
Since the initial 2014 release of the FASB standards, CLA professionals have spoken and written extensively about the impact of revenue recognition changes on foundations, health care, and other nonprofit organizations.
Clarke, a member of FASB’s Not-for-Profit Advisory Committee and the AICPA Not-for-Profit Entities Revenue Recognition Task Force, made her remarks to nonprofit association leaders from across the country in September 2019.