How Nonprofits Can Address Revenue Recognition Issues
Some companies are beginning to implement the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard and the board’s standard on nonprofit financial reporting. For nonprofits, however, one of the main challenges they face is whether certain revenue transactions are considered contributions or exchange transactions. In addition, when reviewing transactions, what is considered a conditional contribution or an unconditional contribution? For more nonprofits and revenue recognition, visit The Journal of Accountancy. As always, Cherry Bekaert’s Nonprofits group can assist with the implementation of the FASB’s revenue recognition standard and your financial reporting needs.
How Form 990 Can Benefit Nonprofits
Tax season is here, which means nonprofits are preparing for the submission of their annual Form 990 or 990-EZ. What some nonprofits might not be aware of, however, is that the form is an opportunity to promote their efforts to prospective donors. Philanthropic strategist Bruce DeBoskey recently identified which information on Form 990 could be of interest to potential donors. Such areas of interest include a nonprofit’s mission statement, the use of program-related investments, and lobbying activities. More on Form 990 is available at the Nonprofit Quarterly.
FASB Consolidation Guidance Could Be Split Up
In a unanimous decision last week, Financial Accounting Standards Board (“FASB”) members agreed to propose splitting its consolidation guidance in two. The FASB wants to remove the guidance regarding voting interest entities and variable interest entities under Topic 810, Consolidation, and add it to a new standard called Topic 812. FASB members noted that the separation would make consolidation guidance easier for companies to follow and would conform to how Big Four firms produce their own manuals for accountants to consult. The March 8 decision was part of the board’s work to simplify certain aspects of Topic 810, which defines. Read More.
New Gender Gap Analysis Published
A new analytical report on gender disparities in the research field has been released by information solutions-leader Elsevier. “Gender in the Global Research Landscape” examines research performance by gender from a dozen countries or regions, and more than 20 years and in 27 fields. Some of the report’s main findings include: Women collaborate internationally less than men Women inventors are on the rise, but the number remains proportionally low Women are less likely to participate in cross-sector research concerning academe and industry More on Elsevier’s report is available on Inside Higher Ed.
Harvard Ordered to Release Donor’s Financial Information
A federal judge has ordered Harvard University to release any financial information it possesses on entrepreneur Charles Spackman. The decision is in response to a lawsuit filed by investor Sang Cheol Woo to collect a judgment from Spackman, one of Harvard’s wealthiest donors. The Woo ruling could impact the money Harvard previously received from Spackman, and the school could be sued if a fraudulent transfer took place. More on the Harvard ruling is available at the Nonprofit Quarterly website.
FASB Addresses General Expenditure Questions for Nonprofit Standard
With the 2018 effective date approaching for Accounting Standards Update (“ASU”) No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, a project manager with the Financial Accounting Standards Board’s (“FASB”) research team has advised nonprofit groups not to overthink the concept of “general expenditure.” Addressing concerns over the disclosure of funds for general expenditure at last week’s FASB Not-for-Profit Advisory Committee meeting, Rick Cole said donor restrictions on certain funds would not be exempt from general expenditures. He remarked that many of the illustrations should be taken as they are, not as absolute law. FASB Assistant Director. Read More.
Topics: Accounting Standards Update "ASU", FASB, FASB Nonprofit Standard, FASB Not-for-Profit Advisory Committee, Financial Accounting Standards Board "FASB", Financial Statement Disclosures, Not-for-Profit Entities (Topic 958)