Nonprofit Organization Financial Reporting-Recognition of Services Received from Personnel of an Affiliate

NONPROFIT ORGANIZATION FINANCIAL REPORTING-RECOGNITION OF SERVICES RECEIVED FROM PERSONNEL OF AN AFFILIATE

Under ASU 2013-06, recipient nonprofit organizations are required to recognize personnel services received from an affiliate for which the affiliate doesn’t charge them.

Provisions of this Accounting Standards Update include:

  • Services should generally be measured at cost
  • If cost significantly overstates or understates the value of services received, then services should be measured at fair value
  • There is no change to the accounting for the organization providing such services

Effective Date: Annual reporting periods beginning after June 15, 2014 with modified retrospective application.

For questions or additional information, contact brent@brookslodden.com.