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Nonprofits Still Unsure of Grants Guidance for Revenue Standard

Facing implementation of the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard in 2019, nonprofits are uncertain whether government grants and related contracts with government entities or foundations are to be classified as exchange transactions or contributions. The issue was the center of discussion at the September 8 meeting between the FASB and its Not-for-Profit Advisory Council, along with how the conditions and restrictions on such contributions should be distinguished. The meeting was part of the accounting board’s effort to streamline implementation of Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (Topic 606). While the landmark standard outlines. Read More.

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Changes Proposed to Hedge Accounting Guidance

An Exposure Draft has been issued to improve the guidance in relation to hedging activities. The proposed Accounting Standards Update (“ASU”), Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, includes the Financial Accounting Standards Board’s (“FASB”) recommendations to help entities disclose the economic results of their risk management activities. The proposed changes also aim to simplify hedge accounting guidance while maintaining the value of the financial reporting information presented. Comments on the proposal are due Tuesday, November 22. More on the proposed changes to hedge accounting guidance is available in the FASB news release.

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FASB Nonprofit Council to Discuss Standard-Setting Projects

A web conference is scheduled today involving the Financial Accounting Standards Board (“FASB”) and its Not-for-Profit Advisory Committee (the “Committee”). The meeting will provide the Committee an opportunity to discuss recent accounting issues impacting nonprofit organizations. Committee members will also have a chance to offer feedback on the FASB’s latest projects. In particular, the FASB wants the Committee’s input on projects such as the revenue recognition of grants and contracts, nonprofit limited partnerships consolidation, and the proposed amendments to the disclosure of net periodic pension costs and net periodic postretirement benefit costs. The board is also interested in how nonprofit. Read More.

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FASB Reviews Ongoing and Future Projects

Several projects received attention at the Financial Accounting Standards Board’s (“FASB”) August 31 meeting. Last week’s board meeting featured staff research updates on the following potential projects: Accounting for service concession arrangements Collaborative arrangements Scope of modification accounting in Topic 718, Compensation─Stock Compensation The FASB also redeliberated its proposed Accounting Standards Update, Technical Corrections and Improvements to Update No. 2014-09, Revenue from Contracts with Customers (Topic 606); discussed the revenue recognition of grants and contracts by nonprofits; and reached conclusions on the proposed guidance updates for long-duration contracts. More on the tentative board decisions from the August 31 meeting is available at

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New Cash Flow Statement Classification Guidance Issued

The Financial Accounting Standards Board has issued new guidance to address how specific cash receipts and payments are classified in cash flow statements. The amendments in Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, cover the following cash flow issues: Debt prepayment or debt extinguishment costs Settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant concerning the effective interest rate of the borrowing Contingent consideration payments made following a business combination Proceeds from the settlement of insurance claims Proceeds from the settlement. Read More.

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Exposure Draft Issued for Presenting Items in Financial Statements

Moving forward on its conceptual framework project, the Financial Accounting Standards Board (“FASB”) has issued the Exposure Draft, Conceptual Framework for Financial Reporting: Chapter 7: Presentation. The proposal is intended to help financial statement users better evaluate future cash flows by addressing how to group individual items, and clarify the relationships between assets, liabilities, and equity and the impact of related changes of such assets and liabilities on income and cash flows. Comments on the Exposure Draft are due Wednesday, November 9. More details can be found in the FASB press release.

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