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

ED Seeks Comments on Proposed IPEDS Finance Survey Changes

The Department of Education is accepting comments on its proposed Integrated Postsecondary Data System (IPEDS) survey changes through May 20. Most notably, proposed finance survey changes address tuition discounts, financial ratios, endowments, other post-employment benefits, and athletics.

ED Sets May 14 Deadline for Reporting Financial Responsibility Triggering Events

New rules specifying the standards institutions must meet to be deemed financially responsible took effect in October 2018. ED recently shared how to report litigation or other events that trigger mandatory disclosures and affirmed the borrower defense to repayment standard.

2019 Higher Education Accounting Forum

April 14-16 | Philadelphia