ASU No. 2015-07 Affects Investment Disclosures for Reporting Entities Using Net Asset Value per Share
The Financial Accounting Standards Board (“FASB”) recently issued Accounting Standards Update (ASU) 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). Impacting reporting entities that measure an investment’s fair value using the net asset value per share (or an equivalent) practical expedient, the amendments in ASU No. 2015-07 eliminate the requirement to classify the investment within the fair value hierarchy. In addition, the requirement to make specific disclosures for all investments eligible to be assessed at fair value with the net asset value per share practical expedient. Read More.
NFL No Longer Tax Exempt
Earlier this week, the National Football League (“NFL”) announced plans to give up its nonprofit tax exempt status. Decided by team owners, the move was in response to growing controversy concerning the tax exemption and was considered a distraction related to the misunderstanding of the NFL’s office status. Irrespective of the NFL’s tax status, the league will still receive other tax breaks such as bonds for financing stadiums. Please visit CNN Money’s website for the full article . Also check out Cherry Bekaert’s Nonprofits industry group for details on how our Firm can guide your organization forward.
FASB Proposes Major Changes to Nonprofit Accounting
Earlier today, the Financial Accounting Standards Board (“FASB”) proposed the first significant changes to nonprofit accounting in 22 years. Introduced as 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, the proposal aims to improve financial reporting information that nonprofits provide benefactors, lenders, and regulators. ASU No. 2015-230 also includes requirement updates for the statement of financial position, the statement of activities and the cash flow statement, as well as changes to the rules for financial statement footnotes. Major changes include reducing the number of net asset. Read More.
List of Colleges under Cash Monitoring to be Released
After secretly keeping tabs on higher institutions that had their access to federal funding restricted, the Department of Education plans to reveal the names of those colleges and universities sometime next week. Notified of the upcoming release, the colleges under scrutiny faced “cash monitoring” due to elevated concerns about the risk they posed to students and taxpayers. According to information recently released by the Department of Education, 76 colleges faced the most severe form of cash monitoring at the end of October 2014. Meanwhile, as of August 2014, 455 higher institutions faced a lower level of scrutiny from the Department. Read More.
College Finance Officers Uncertain about Nonprofit Accounting Changes
As the Financial Accounting Standards Board (“FASB”) continues to overhaul its nonprofit accounting guidelines, several college finance officers are concerned over a major piece of the standard setter’s upcoming proposal. During FASB’s meeting Tuesday, representatives for the National Association of College and University Business Officers expressed support for a consistent operating measure that would clarify expenditures associated with a nonprofit’s mission and available funds. However, colleges and universities are uncertain whether the proposed metric would properly define the spending associated with their missions. Expressing such concerns, George Washington University associate vice president Sharon Heinle is worried that lenders, creditors and. Read More.
University of Penn Not Happy with PILOTs Resolution
Seeking to resolve the city’s school funding crisis, the Philadelphia City Council has approved a non-binding resolution that allows its mayor to request payments in lieu of taxes (PILOTs) from larger nonprofit organizations. Approved by a 15-1 vote, the resolution seeks payments from mega-nonprofits such as universities and major healthcare institutions. Although the resolution was introduced by a University of Pennsylvania (“Penn”) alumnus, the Daily Pennsylvanian reports that the campaign for PILOTs had singled out the school. Additionally, a Philadelphia-based economic justice coalition that supports PILOTs specifically targets Penn on its website. For more on the PILOTs resolution , visit the Nonprofit. Read More.