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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.


Sue Menditto

Senior Director, Accounting Policy


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