FASB November 9th Meeting Recap
Progress was made last week concerning two of the Financial Accounting Standards Board’s (“FASB”) key projects. During its November 9 meeting, the FASB agreed that early application of its upcoming Accounting Standards Update (“ASU”) for clarifying the definition of a business will be allowed for certain transactions prior to the standard’s issuance date. Staff members were ordered to draft the final ASU for vote. Furthermore, the FASB agreed to restore the consolidation guidance previously under Subtopic 810-20, Consolidation—Control of Partnerships and Similar Entities. The guidance will be reinstated under Subtopic 958-810, Not-for-Profit Entities—Consolidation, and impacts nonprofit entities when adopting the. Read More.
FASB Nonprofit Consolidation Guidance Changes Proposed
Seeking to clarify consolidation guidance for nonprofits with respect to the effective date of Accounting Standards Update (“ASU”) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, the Financial Accounting Standards Board (“FASB”) has issued the proposed ASU, Not-for-Profit Entities – Consolidation (Subtopic 958-810): Clarifying When a Not-for-Profit Entity That Is a General Partner Should Consolidate a For-Profit Limited Partnership or Similar Entity. The proposed amendments would retain the consolidation guidance under Subtopic 810-20 by adding it to Subtopic 958-10. Per the proposal, nonprofits acting as general partners will continue to be assumed to oversee a for-profit limited partnership. Read More.
Topics: Consolidation—Control of Partnerships and Similar Entities (Subtopic 810-20), nonprofit consolidation, Not-for-Profit Entities—Consolidation (Subtopic 958-810), Proposed Accounting Standards Update
The Impact of Catholic Church Closures
Highlighting the closures of Catholic churches over the last decade, a recent Nonprofit Quarterly article examines how nonprofit entities are being forced to consolidate operations. The article discusses the challenges the Catholic Church faces, such as balancing closures in the Northeast and Midwest and rapid growth in the South and West. Also mentioned is the pushback often experienced from constituents of soon-to-be consolidated nonprofits who feel betrayed. The article on the closures of Catholic churches is available on the Nonprofit Quarterly Web site.
Topics: nonprofit consolidation
FASB Adds Nonprofit Consolidation Reporting and Nonemployee Share-Based Compensation Projects
As a result of its December 16th meeting, the Financial Accounting Standards Board (“FASB”) has added the following two projects to its standard-setting agenda: Nonprofit consolidation reporting. The FASB will propose guidance clarifying when a nonprofit group serving as a general partner should report the holdings of a for-profit limited partnership on its balance sheets. Some nonprofits previously said that the guidance was not clear in Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. Nonemployee share-based compensation. Subtopic 505-50, Equity—Equity Based Payments to Non-Employees, addresses some of the accounting for nonemployee share-based payments, but the. Read More.