FASB Discusses Phase 1 of Nonprofit Accounting Project
On Friday, the Financial Accounting Standards Board (“FASB”) met to discuss Phase 1 of redeliberations for its proposed Accounting Standards Update (ASU), Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities. In particular, the discussion focused on the following issues: Methods of Presenting Operating Cash Flows. The FASB agreed not to require the direct method of presenting operating cash flows, but will continue to allow nonprofit entities to use the direct method or indirect method. The FASB also decided to no longer require the indirect reconciliation if a nonprofit entity uses the. Read More.
FAC Single Audit Submission Deadline Extended Again
In a follow up to last week’s blog , the Federal Audit Clearinghouse (“FAC”) has again extended the deadline for submitting single audits. Initially set for January 31, 2016, single audit submissions are now due February 1, 2016. The announcement comes after the Governmental Audit Quality Center expressed concerns that the January 31st deadline fell on a Sunday. To submit a single audit , visit the reopened FAC website. Anyone using an old link or bookmarked webpage may not be able to access the FAC’s website.
Federal Audit Clearinghouse Reopens & Extends Single Audit Deadline
After a security incident caused a shutdown in July, the Federal Audit Clearinghouse (“FAC”) is once again accepting single audit submissions. Boosting its security and perform system testing efforts, the reopened FAC website requires users to update their passwords. The process for users to update passwords is the same as before the FAC closure. The FAC also extended the deadline for submitting single audits to January 31, 2016. The submission extension language, which is accessible on the FAC’s submit an Audit page , has been updated to reflect the new deadline. While an extended deadline has been announced, earlier submissions are encouraged.
Duke Energy Claims NC WARN Illegally Collecting Fees from Church
A small North Carolina church is in the middle of a controversy regarding the source of its solar power. While the church receives free solar panels from the North Carolina Waste Awareness & Reduction Network (“NC WARN”), Duke Energy says the nonprofit is illegally collecting fees from the congregation. Backing its claim, North Carolina law states that only a utility is allowed to collect money from energy production. As a result, Duke Energy wants state regulators to fine NC WARN $125,000 and $1,000 per day. Learn more about the North Carolina solar panel controversy at the Nonprofit Quarterly website.
FASB Divides Nonprofit Accounting Project into Two Phases
After receiving conflicting feedback on its proposal calling for changes to nonprofit accounting guidance, the Financial Accounting Standards Board (“FASB”) recently decided to split the project into two segments. The standard setter plans to focus on the parts of Proposed Accounting Standards Update (ASU) No. 2015-230, Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities, that have received general support and postpone work on some of the more contentious aspects. Over 250 comment letters were received regarding the Exposure Draft. In addition, the FASB held 10 workshops across the US as well. Read More.
FASB Reaches Tentative Decisions on Accounting for Goodwill and Identifiable Intangible Assets
At its October 28th Board meeting, the Financial Accounting Standards Board (“FASB”) made tentative decisions based on the following projects: Business Combinations: Accounting for Goodwill for Public Business Entities and Not-for-Profit Entities . The FASB has agreed to take a phased approach with its project to reduce the cost and complexity of the subsequent accounting for goodwill. During its first phase, the FASB will shorten the impairment test by eliminating the requirement to execute a hypothetical purchase price allocation when the reporting unit’s carrying value surpasses its fair value (step 2 of the impairment model in existing GAAP). After brief consideration, the FASB decided not to give entities the option to perform. Read More.