Not-for-Profits

Delayed Implementation Date for Some

The Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) which allows for a later adoption of the revenue and lease ASU's. This option is made only to businesses...

An Executive Compensation Checkup

One of the quickest ways for a nonprofit to get in trouble is to pay officers and key employees excessive salaries. To keep on the straight and narrow, consider these five tips for making your compensation decisions: Establish a compensation committee. Designate a group of board members to...

AICPA Addresses Three Revenue Recognition Implementation Issues

-by Andrew de Labry, CPA In May 2014 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), which outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers. The ASU supersedes and replaces nearly...

New Guidance for Accounting for Grants and Contributions

Grants

By Linda Marie Pearson, CPA, CFE FASB has proposed an Accounting Standards Update to the FASB Accounting Standards Codification (ASC or GAAP) related to recording contributions received and contributions made. The purpose of the proposed change is to address the diversity in practice when applying current GAAP to grants...

Audit Q&A

Audit Q&A, State Capital Building

What to Know When Taking Federal Money The Office of Management and Budget (OMB) has streamlined its guidance on audit requirements for nonprofits that receive federal awards. Among other things, the revised rules reduce the burden on smaller nonprofits by increasing the threshold that triggers compliance audits from $500,000 to...

Compliance Matters:

Fundraising Events and Fair Market Value Sorting out the legalities of auctions, raffles and gala events can be a challenge. There’s plenty of, “Yes … but.” Take a benefit dinner/dance, for example. Essentially, the IRS allows donors to claim a charitable contribution only when nothing of value is received in...

Rethinking Nonprofit Financial Reporting

The Financial Accounting Standards Board (FASB) has issued new accounting standards for nonprofit financial reporting. The update, Presentation of Financial Statements of Not-for-Profit Entities, is designed to help nonprofits present their financials in a way that tells their story more transparently. A Clearer Picture, Inside and Out Both internal...

FASB Proposes to Simplify the Classification of Debt

by Linda Marie Pearson, CPA, CFE On January 10, 2017, FASB issued an exposure draft to simplify the classification of debt in a classified balance sheet (current versus noncurrent). The amendments in this proposed Update will replace the current, fact-specific guidance with “an overarching, cohesive principle” – the...