What are the applicable accounting standards for U.S. not-for-profit organizations?
Statements of Financial Accounting Standards (SFAS) The Financial Accounting Standards Board (FASB) issued the following two main Statements of Financial Accounting Standards (SFAS) for the not-for-profit sector: A. SFAS No. 116 – Accounting for Contributions Received and Contributions Made (Issued 6/93). This Statement accomplishes the following: • Establishes accounting standards for contributions and applies to all entities that receive or make contributions. Generally, contributions received, including unconditional promises to give, are recognized as revenues in the period received at their fair values. Contributions made, including unconditional promises to give, are recognized as expenses in the period made at their fair values. Conditional promises to give, whether received or made, are recognized when they become unconditional, that is, when the conditions are substantially met. • Requires nonprofit organizations to distinguish between contributions received that increase perm
