Nonprofit Accounting Guidance Improved by FASB.

The Financial Accounting Standards Board issued an accounting standards update that clarifies and improves the scope and accounting guidance around contributions of cash and other assets received and made by not-for-profit organizations and business enterprises.

The update clarifies and improves current guidance about whether a transfer of assets-or the reduction, settlement or cancellation of liabilities-is a contribution or an exchange transaction. It provides criteria for determining whether the resource...