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Accounting Standards for Private Sector Not-for-Profit Organizations

Contributions – Revenue Recognition and Related Matters Exposure Draft Feedback Statement

May 14, 2024 News, Resource

In March 2023, the Accounting Standards Board (AcSB) issued the Exposure Draft, “Contributions – Revenue Recognition and Related Matters,” proposing a single method for recognizing restricted contributions. Under this method, restricted contributions would be recognized as the related restrictions are met. The Exposure Draft also proposed other improvements to contribution accounting, such as clarifying definitions and adding new presentation and disclosure requirements.

We received substantial feedback on the Exposure Draft. While many respondents agreed with the proposed approach for recognizing restricted contribution revenue, others expressed concerns.

The AcSB considered this feedback and, through targeted outreach and consultation with its Not-for-Profit Advisory Committee, explored various options to address the feedback heard on the Exposure Draft. After thorough consideration, the Board decided to take the Contributions project in a new direction.

To learn more about the future direction of the Contributions project, and the feedback that forms the basis of this new direction, read our feedback statement, “Contributions – Revenue Recognition and Related Matters. Exposure Draft Feedback Statement.”

AcSB Contributions Feedback Statement thumbnail

Download Feedback Statement

Staff Contact(s)

Katherine Knowlton, CPA, CA Associate Director, Accounting Standards Board