Talking about the changes to revenue recognition and contribution accounting is one thing, but implementing it can be another chore entirely for not-for-profit organizations.

Changes in ASC Topic 606, Revenue from Contracts with Customers move accounting for certain types of revenue from a rules-based to a principles-based approach. But organizations will also have to walk through a contribution decision-making tree to determine whether their particular transaction qualifies as a contribution subject to the updates to ASC Topic 958, Not-for-Profit Entities or if the transaction will follow the revenue recognition guidance.