Click here to read about the services we provideClick here to learn more about the industries we serveClick here to learn more about Blue & Co., LLCClick here to visit the main page of the Blue & Co., LLC  websiteClick here for valuable resourcesClick here to read about careers at Blue & Co., LLCClick here to read recent press releases of Blue & Co., LLCClick here to contact us



  Print Version

Ryan Adams Staff Accountant

The Financial Accounting Standards Board (FASB) recently issued Accounting Standards Update (ASU) No. 2013-06, Not-for-Profit Entities (Topic 958): Services Received from Personnel of an Affiliate.

The revenue recognition guidance for not-for-profit entities requires that contributed services be recognized at fair value, and that those services should only be recognized if they (1) create or enhance nonfinancial assets or (2) require specialized skills by individuals possessing those skills and typically would need to be purchased if not provided by donation. In practice, diversity exists about whether a recipient not-for-profit entity should consider as a contribution services received from personnel of an affiliate and whether that not-for-profit entity should apply the contributed services guidance.

The ASU requires a recipient not-for-profit entity to recognize all services received from personnel of an affiliate that directly benefit the recipient not-for-profit entity. Those services should be measured at the cost recognized by the affiliate for the personnel providing those services. If measuring the services received from personnel of an affiliate at cost will significantly overstate or understate the value of the services received, the recipient not-for-profit entity may elect to recognize those services at fair value. The amendments in this Update will reduce diversity in practice and enhance comparability of financial information among not-for-profit organizations.

The amendments in this update are effective prospectively for financial statements issued for fiscal years, and interim periods within those years, beginning after June 15, 2014. A modified retrospective approach for all prior periods presented upon the date of adoption is allowed. Early adoption is permitted.



If you have any questions regarding the article above or any other issue affecting your not-for-profit organization please contact your Blue & Co. advisor or e-mail us at or call us at 800-717-BLUE


Please visit our website at for more information regarding the services we provide.

CIRCULAR 230 DISCLOSURE: To ensure compliance with recently-enacted U.S. Treasury Department Regulations, we are now required to advise you that, unless otherwise expressly indicated, any federal tax advice contained in this communication, including any attachments, is not intended or written by us to be used, and cannot be used, by anyone for the purpose of avoiding federal tax penalties that may be imposed by the federal government or for promoting, marketing or recommending to another party any tax-related matters addressed herein.


Blue & Co, LLC | 101 West Kirkwood Avenue | Suite 236 | Bloomington, IN 47404

Blue & Co, LLC | 12800 N. Meridian Street | Suite 400 | Carmel, IN 46032 *

Blue & Co, LLC | 627 Washington Street |  Columbus, IN 47201

Blue & Co, LLC | 8800 Lyra Drive | Suite 450 |  Columbus, OH 43240

Blue & Co, LLC | One American Square | Suite 2200 | Indianapolis, IN 46282

Blue & Co, LLC | 250 West Main Street | Suite 2900 | Lexington, KY 40507

Blue & Co, LLC | 2650 Eastpoint Parkway | Suite 300 | Louisville, KY 40223

Blue & Co, LLC | 106 Community Drive  | Seymour, IN 47274

* firm administration location

Privacy Notice
Please add Blue & Co., LLC to your approved senders list to ensure uninterrupted communication.