Proposed FASB Clarification for Contributions Received and Contributions Made

Article Excerpt:

The Financial Standards Accounting Board (FASB) recently issued a proposed Accounting Standards Update (ASU or Update) (Topic 958) intended to clarify and improve the scope and accounting guidance for contributions received and made. The amendments in the proposed ASU attempt to eliminate the difficulty and diversity in practice in recognizing grants received as either exchange transactions or contributions and in distinguishing between conditional and unconditional contributions.