FASB to Clarify Guidance for Collaborative Arrangements
The Financial Accounting Standards Board (“FASB”) will seek ways to make its guidance under Topic 808, Collaborative Arrangements, easier to follow. At its October 4 meeting, the FASB unanimously agreed to simplify the guidance to reflect the board’s initial goal of clarifying when partners in a collaborative arrangement must record revenue due to the venture’s cost reductions. The FASB also plans to examine the guidance for transactions that do not generate revenue for the partners, as well as consider guidance for what is the unit of accounting under Topic 808. FASB members and staffers said that the board will not. Read More.
2017 Compliance Supplement Issued
In a follow-up to our June 16 blog , the Executive Office of the President Management and Budget has issued the final version of the 2017 Compliance Supplement . The document can be downloaded from White House website.
Faux Donor Scams Nonprofit for Veterans
An Oregon-based nonprofit gym for veterans has fallen victim to a con artist. Alleged wealthy businessman named Garyn Bowen had pledged $425,000 to Lift for the 22, and claimed that supplement retailer GNC would match his gift. Since Bowen was a frequent attendee of the gym’s workout programs, the organization did not bother to check his background. After arranging a Facebook live-stream of the check presentation, the gym never received Bowen’s check. Later, the gym discovered that Bowen had stolen another member’s wallet to make purchases. More on Lift for the 22’s story is available on the Nonprofit Quarterly website.
COFAR Updates Frequently Asked Questions Document on Uniform Guidance
The Council on Financial Assistance Reform has issued a revised frequently asked questions (“FAQs”) document on the Office Management and Budget’s (“OMB”) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR 200. Updated as of July 2017, the document features 24 new FAQs and four revised FAQs. Download the new FAQs document on OMB’s Uniform Guidance at 2 CFR 200 here.
FASB Grant Accounting Proposal Issued
The Financial Accounting Standards Board (“FASB”) is proposing new guidance for contributions made or received by organizations, especially nonprofits. The proposed Accounting Standards Update (“ASU”) will help decide whether an organization’s transactions are treated as either a contribution or an exchange. This would be achieved by clarifying guidance on assessing whether a resource provider receives value in exchange for the transferred resources. The proposal also provides an improved framework that helps organizations decide whether a contribution is conditional or unconditional. In addition, the proposed amendments help distinguish between a donor-imposed condition and a donor-imposed restriction. Transfers of assets from a. Read More.
AICPA Advises Nonprofits on Financial Reporting Model Changes
In the first of a two-part blog series on its website, the American Institute of Certified Public Accountants (“AICPA”) discusses the upcoming changes to the nonprofit financial reporting model. The changes are part of the Financial Accounting Standards Board’s Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, which affects certain line items on nonprofits’ financial statements. The blog series’ first installment features suggestions on an organization’s chart of account modifications in five areas: liquidity, net assets, investment return, statement of cash flows and expense reporting. To read part one of the blog series, visit AICPA.org.