The National Association of College and University Business Officers (NACUBO) has released a new advisory using tuition to illustrate guidance under Accounting Standards Codification (ASC) Topic 606, Revenue From Contracts With Customers. Accounting Advisory 19-01, FASB ASC 606, Revenue From Contracts with Customers: Tuition Revenue, states that a student’s signed financial responsibility agreement authorizes a college or university to consideration, in exchange for promised services, on the date payment is due. The advisory also explains various terms and requirements, including performance obligations, portfolio approach and contract liabilities.
More on this Accounting Advisory is available on the NACUBO website.
