Skip to content Menu

NACUBO has issued Accounting Advisory 19-01, FASB ASC 606, Revenue From Contracts with Customers: Tuition Revenue. The advisory uses tuition to illustrate concepts in Accounting Standards Codification (ASC) Topic 606 and asserts that a student’s signed financial responsibility agreement (or similar contract) entitles an institution to consideration, in exchange for promised services, on the payment due date. Consequently, an institution has a receivable for promised services on the date that payment is due on signed contractual agreements with students.  

The advisory explains new terms and requirements such as:

  • Performance obligations.
  • Transaction price.
  • Consideration payable to a customer (student financial aid).
  • Variable consideration.
  • Contract assets.
  • Contract liabilities.
  • Portfolio approach.
  • Receivable recognition.

The advisory also provides detailed accounting examples and addresses financial statement disclosures.

Contact

Sue Menditto

Director, Accounting Policy

202.861.2542

smenditto@nacubo.org


Related Content

NACUBO Comments Support GASB’s Proposed SRECNP Format

In comments on the Governmental Accounting Standards Board’s Preliminary Views on financial reporting model improvement, NACUBO supported the proposed operating results display and asked for an improved definition of subsidy revenue.

NACUBO Suggests Additions to GASB’s Fiduciary Activities Guide

In comments to the Governmental Accounting Standards Board on its Fiduciary Activities Implementation Guide, NACUBO asked for clarifying guidance on materiality and fiduciary fund reporting for investments held on behalf of others.

2019 Higher Education Accounting Forum

April 14-16 | Philadelphia