Services Received from an Affiliate

FASB issued Proposed Accounting Standards Update (ASU) No. EITF-12B, Not-for-Profit Entities (Topic 958): Personnel Services Received from an Affiliate for Which the Affiliate Does Not Seek Compensation (a consensus of the FASB Emerging Issues Task Force).  The FASB will be accepting comments on this proposed accounting update until September 20, 2012.  The proposed update would modify the current that guidance which indicates that only those contributed services that (1) create or enhance nonfinancial assets or (2) require specialized skills, are provided by individuals possessing those skills, and typically would need to be purchased if not provided by donation should be recognized.  In addition, under this accounting update the value of the services would be measured at the cost recognized by the affiliate for the personnel providing those services.  For more detail read the full FASB exposure draft.