Single Women More Willing to Give and Volunteer
A report by the Indiana University–Purdue University Indianapolis’ Women’s Philanthropy Institute discovered that men and women differ in their charitable giving and volunteering habits. Based on the three groups studied (i.e., single men, single women, married couples), single women are more consistent in giving than single men and married couples. Single women are also more likely to volunteer than single men, as are married couples. The trend also extends to the retirement years. After retirement, single women increase their volunteering habits, Single men, however, are less likely to volunteer their time. More on this report is available on the Nonprofit Quarterly website.
FinREC Issues Draft Implementation Guidance for FASB Credit Loss Standard
The American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) has issued the following working drafts on the implementation of Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments: Working Draft: Allowance for Credit Losses Implementation Issue #1: Zero Expected Credit Losses: This working draft offers guidance for situations when a lender may experience no credit loss, even for a defaulted asset. The draft features implementation guidance for applying the zero-loss assumption to instruments like Treasury securities or mortgage bonds supported by the Federal National Mortgage Association. Working Draft: Allowance for. Read More.
Survey Reveals Financial Troubles at Private Four-Year Colleges
Inside Higher Ed’s latest survey of business officers reflect declining confidence in financial stability at four-year private colleges. In the 2018 Survey of College and University Business Officers, 68 percent of financial officers at private four-year institutions say that they cannot sustain their tuition discount rate. The number is a nine-percent increase from 2017 and a 21-percent rise from three years ago. Other notable findings were that nearly one-quarter (24 percent) of private college financial officers say their leaders have held serious talks about merging with another school, and 26 percent of officers believe their institution should merge with another.. Read More.
FASB to Clarify Collaborative Arrangements Guidance
Pharmaceutical and biotechnology companies that set up joint ventures to develop drugs will receive new accounting guidance soon. In a unanimous decision on July 26, the Financial Accounting Standards Board (“FASB”) agreed to finalize a small change to U.S. GAAP that would help companies account for transactions in collaborative arrangements as revenue. The FASB hopes the update will help companies follow the revenue guidance under Accounting Standards Codification (“ASC”) 606, Revenue From Contracts With Customers. Likely to be issued before year’s end, the update will reflect guidance under Proposed Accounting Standards Update (“ASU”) No. 2018-240, Collaborative Arrangements (Topic 808): Targeted Improvement. The. Read More.
Judge Dismisses Lawsuit over NYU Employee Retirement Plans
Last week, U.S. District Judge Katherine Forrest dismissed a class-action lawsuit against New York University (“NYU”) concerning the institution’s employee retirement plans. Thousands of employees had accused NYU of mishandling their retirement plans, which included an estimated $358 million loss at two 403(b) plans. Judge Forrest ruled that the plaintiffs could not prove NYU’s retirement plan committee caused the losses by burdening employees with underperforming investment choices. The lawsuit is the first of many similar cases brought against universities and their retirement plans; Cornell, Duke and Northwestern are also being sued. More on this ruling is available on the Reuters website.
Banks and Trade Groups Want More Time to Implement FASB Credit Loss Standard
A few months have passed since bank regulators introduced a proposal to alleviate the regulatory capital impact of the Financial Accounting Standards Board’s (“FASB”) credit loss standard. Several banks and trade groups, however, believe more time is needed to examine the effects of Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In comment letters to regulators, individual banks and trade groups propose extending the phase-in period of the standard from three years to five years. Representatives from groups like the Independent Community Bankers of America said that the. Read More.