FASB & PCC Continue Talks over Private Company Definition
The Financial Accounting Standards Board (“FASB”) has been focused on creating a consistent definition of a “private company” in its Codification of U.S. Generally Applied Accounting Principles (U.S. GAAP). Making accounting easier on private companies and replacing the seven different meanings in the Codification, the revised private company definition would clarify which types of businesses are eligible for accounting breaks, such as additional time for adopting new standards. After outlining which types of companies would not be eligible for such breaks in Accounting Standards Update (ASU) No. 2013-12, Definition of a Public Business Entity, FASB decided that the new definition. Read More.
How Will the New DATA Act Affect You? It’s Not What You Might Think
Signed into law earlier this year, the new Digital Accountability and Transparency Act (DATA Act) impacts federal contractors, subcontractors, grantees (nonprofits and educational institutions), subrecipients and borrowers. An expansion of the Federal Funding Accountability and Transparency Act (FFATA), the DATA Act calls for the establishment of government-wide data standards for financial data to provide consistent, reliable, and searchable spending data on an existing or new website. Additionally, the Act simplifies reporting for entities receiving federal funds. Currently, all federal agencies have their own reporting requirements for spending information which have developed over time. Therefore, it is possible to analyze the. Read More.
Recent Reports Discuss General Operating Support
With nonprofits organizing their 2015 fundraising objectives, reports reveal donors are reluctant to fund the general operations of such organizations. While nonprofits have countered by publicly disclosing the full costs and expenses necessary for providing services to local communities, the recent Grantmakers for Effective Organizations survey said that 81 percent of grant makers distributed general operating support grants as part of their donations. Of that group, 25 percent of their grant dollars supported a nonprofit’s operating expenses. That percentage marks a five percent jump from three years ago. Conversely, The Fall 2014 State of Grantseeking Report by The Foundation Center indicated fewer dollars and grants were allocated to general operating support in. Read More.
ASBCA Decides Government Shutdown Case
It is certain that most contractors recall the government shutdown in October 2013. Many questions were raised as to whether contractors would be able to be paid for days they did not work as a result of the shutdown. On November 10, 2014, the Armed Services Board of Contract Appeals (“ASBCA”; “the Board”) issued a decision in the Appeal of Amaratek, ASBCA Nos. 59149, 59395, that should help answer some questions posed by the shutdown (although the decision is non-precedential). In 2011, the Army awarded Amaratek a contract for material analysis laboratory services at the Yuma Proving Ground in Yuma,. Read More.
Final Rule Affects Bank Holding Companies
In October, the Federal Reserve System’s Board of Governors has approved a final rule that amends certain parts of the current capital plan and stress test rules for various banking companies. Approved in October, the capital plan rule allows the Federal Reserve to review the internal capital planning procedure of a large bank holding company (BHC) with total consolidated assets of $50 billion or more, and its ability to uphold satisfactory capital to operate under anticipated and stressful conditions. The stress test rules also require large BHCs to perform yearly and mid-cycle company-run stress tests. Further, under the Comprehensive Capital. Read More.
Recap of Private Company Council’s Final 2014 Meeting
On December 11th, the Private Company Council (“PCC”) held its last meeting of the year. Along with its parent organization, the Financial Accounting Standards Board (“FASB”), the PCC discussed matters such as: The definitions of “public entity” and related scopes. FASB’s staff members were asked to research how to properly use the updated definition of a public entity while retaining the current scope of each subject. Concerns regarding partnership accounting, particularly pushdown accounting and payments distributed to partners. FASB staff members were asked to continue researching partner contributions of non-monetary assets. The PCC’s feedback on FASB’s share-based compensation project. The. Read More.