College Endowments Highest in Three Years
According to their joint annual study, the National Association of College and University Business Officers (“NACUBO”) and Commonfund are reporting that college endowments are at a three-year high. For the fiscal year ending June 2017, the annual net endowment returns at colleges and universities averaged 12.2 percent. The percentage is a significant jump from the fiscal year 2016 average of -1.9 percent, and it marks the highest average achieved since the fiscal year 2014 (15.5 percent). Despite the turnaround, recent data reveals that the 10-year average annual return decreased from 5 percent in 2016 to 4.6 percent in 2017. More. Read More.
NCAA Pledges to Reform Men’s Basketball
National Collegiate Athletic Association president Mark Emmert promises to act fast on recent allegations concerning men’s basketball. Ahead of the start of next season, Emmert wants to implement recommendations offered by the NCAA’s independent commission on college basketball. The NCAA created the committee following an unearthed scheme that lured basketball recruits with cash to attend certain schools. Emmert said the NCAA’s Board of Governors had reserved $10 million to carry out the commission’s recommendations, which the NCAA expects to receive in April. Additionally, starting next fiscal year, the NCAA will dedicate $2.5 million annually to reform the sport. Check out Inside Higher Ed for more on the NCAA’s attempts to reform men’s basketball.
FASB Q&A Issued for Staff Accounting Bulletin on Tax Reform
The Financial Accounting Standards Board (“FASB”) has published a Staff Q&A regarding whether private entities and nonprofits can apply Staff Accounting Bulletin (“SAB”) No. 118 (Topic 5.EE, Income Tax Accounting Implications of the Tax Cuts and Jobs Act). In its Staff Q&A, the FASB says it does not oppose private entities and nonprofits applying the Securities and Exchange Commission’s interpretive guidance for tax reform . The document also notes that such companies and organizations that employ SAB No. 118 would comply with GAAP. SAB No. 118 was issued in response to the Tax Cuts and Jobs Act. The guidance allows an entity, in certain situations, to include in its financial statements. Read More.
Topics: FASB, FASB Staff Q&A, Financial Accounting Standards Board "FASB", Nonprofits, SEC Interpretive Guidance, Securities and Exchange Commission "SEC", Staff Accounting Bulletin "SAB", Tax Cuts and Jobs Act, Tax Reform
AICPA Offers Advice to Nonprofit Accounting Staff
The American Institute of Certified Public Accountants (“AICPA”) is offering nonprofit accounting staff members tips on how it should approach the latest accounting standards updates and newly signed tax reform. The tips are aimed to help how nonprofits select new board members, manage significant projects, prepare for the annual audit, and address tax compliance. Check out the AICPA’s four tips for nonprofit accounting staff on its AICPA Insights blog.
FinREC Proposes Industry-Specific Implementation Guidance for Revenue Standard
Five working drafts have been issued to help several industries implement Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers, by the Financial Accounting Standards Board. The working drafts were published earlier this month and are as follows: Healthcare Industry: Health Care Entities Revenue Recognition Implementation Issue #8-10: Performance Obligations Telecommunications Industry: Telecommunications Revenue Recognition Implementation Issue #15-6: Impact of Enforceable Rights and Obligations on Contract Term Nonprofits Industry: Not-for-Profit Revenue Recognition Implementation Issue #11-5: Not-for-Profit Subscriptions and Membership Dues Time-Share Industry: Time-Share Revenue Recognition Implementation Issue #16-8: Allocating the Transaction Price & Transfer of Control and Time-Share Revenue Recognition Implementation Issue #16-10: Contract Costs Produced by the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”), the proposed guidance will become part of the next version of the Audit and Accounting Guide: Revenue Recognition. Comments on the working drafts are due February 1, 2018.
Topics: AICPA, American Institute of Certified Public Accountants "AICPA", FASB, Financial Accounting Standards Board "FASB", Financial Reporting Executive Committee "FinREC", healthcare, Nonprofits, Revenue From Contracts With Customers, Revenue Recognition, Telecommunications, Time-Share, Working Drafts
Report Recommends Improving Educational Quality at Colleges
The American Academy of Arts and Sciences has issued a study calling for improved educational quality to help college students excel in the 21st century. In its report, “The Future of Undergraduate Education, The Future of America,” the academy proposes a three-part strategy that ensures first-rate learning experiences, increased completion rates and reduced inequities among higher institutions, and controlled college expenses. While the academy believes technology will help boost educational quality, it anticipates some of its goals could take decades to accomplish. More on the American Academy of Arts and Sciences report is available on the Inside Higher Ed website.