Skip to content Menu

NACUBO has issued its third and final advisory on revenue recognition. Advisory 19-03, Revenue Recognition (Topic 606): Disclosures notes that most of the required disclosure information is already included in the summaries of significant accounting policies. The report also clarifies why the new requirements should have a very limited impact on higher education institutions.

Advisory 19-03 walks through the following seven major categories of disclosure requirements:

  1. General disclosures
  2. Disaggregation of revenue
  3. Contract balances
  4. Performance obligations
  5. Transaction price allocated to remaining performance obligations
  6. Determining the timing of satisfaction of performance obligations
  7. Determining the transaction price and the amounts allocated to performance obligations

The advisory describes transition options: either full retrospective or modified retrospective approach, requisites for each disclosure category, and the recommended approach for complying. Disclosure examples are provided to illustrate essential points and an appendix is included to demonstrate discretionary considerations.

Contact

Sue Menditto

Senior Director, Accounting Policy

202.861.2542


Related Content

ED Seeks Comments on Proposed eZ-Audit Changes

The Department of Education’s Office of Federal Student Aid is currently seeking comments on proposed changes to the eZ-Audit system institutions use to submit financial responsibility information. Comments are due by February 24, and NACUBO is preparing to respond.

FASB Proposal Addresses In-Kind Gifts

In an effort to increase transparency about contributed non-financial assets, FASB’s exposure draft would require distinct financial statement presentation and enhanced disclosures.

GASB Proposal Addresses Defined Contribution Plans and Component Unit Criteria

A GASB exposure draft indicates that defined contribution benefit plans would not be included in fiduciary fund statements because the costs would not be worth the benefits. Comments are due April 10.