New AICPA Technical Questions and Answers Issued on Public Businesses
The American Institute of Certified Public Accountants (“AICPA”) has issued new Technical Questions and Answers (“TQAs”) offering guidance for related terminology and other matters concerning public business entities. Section 7100, Definition of a Public Business Entity, features 16 new questions and answers to help a company determine its status as a public business. Included in the TQAs is detailed guidance addressing depository institutions, broker-dealers, insurance companies and nonprofits. A press release on Section 7100 is available on the AICPA website.
Topics: AICPA, American Institute of Certified Public Accountants "AICPA", Broker-Dealers, Depository Institutions, Insurance Companies, Nonprofit, Public Business Entities, Technical Questions & Answers
Bipartisan Legislation Restores Charitable Giving Incentives
President Obama recently signed into law bipartisan legislation that addresses several charitable nonprofit policy issues. Approved by the Senate as the Consolidated Appropriations Act, 2016, the bill permanently restores the following expired charitable giving incentives: The food donation tax deduction. This tax incentive increases the charitable giving limit and permits small businesses that donate wholesome surplus food to a qualified nonprofit organization to receive the same enhanced tax deduction C corporations are allowed to take. In addition, the provision also raises the limit for business donations to 15 percent of adjusted gross income, as well as helps farmers and ranchers via a new. Read More.
North Carolina Nonprofit Denied Property Tax Exemption
Ruling that some commercial activities on a Western North Carolina nonprofit’s property are not used completely for charitable or educational reasons, the North Carolina Court of Appeals (“the Court”) has denied the organization a property tax exemption. Basing its decision on a strict interpretation of the term “wholly and exclusively,” the Court identified gift shop and restaurant operations, and the existence of administrative offices are considered commercial activities not suitable for property tax exemption among nonprofits. The Court’s broad application of the “wholly and exclusively” term to all nonprofit property tax exemptions reflects concerns expressed by North Carolina nonprofits, as. Read More.
Not-for-Profit Advisory Committee to Meet with FASB on Thursday
Scheduled for Thursday, the Financial Accounting Standards Board (“FASB”) will hold its second meeting next week with the Not-for-Profit Advisory Committee (“the Advisory Committee”) from 10:00 a.m. to 5:30 p.m. As part of the meeting agenda, the FASB plans to discuss with the Advisory Committee its project on financial statements of nonprofit entities, as well as current trends, concerns and observations. All general sessions from the meeting will be open for public observation. In addition, the Advisory Committee will host a breakout group session at 11:00 a.m. and 2:30 p.m. Due to space limitations, the group discussions will not be. Read More.
Nonprofits Slow to Implement Enterprise Risk Management
Based on a recent survey by the North Carolina State University’s ERM Initiative for the American Institute of CPAs, only 13 percent of nonprofits have implemented a formal enterprise risk management (ERM) process. Conversely, 52 percent of public companies and 43 percent of financial services companies surveyed have employed an ERM. Addressing the low rate at a nonprofit conference last month, WeiserMazars consulting partner Bob Cummings identified six ways nonprofits can execute and maintain ERM: Have a risk management governance structure; Follow a risk management framework; Continuously identify risk and the risk event universe; Create and manage a risk profile;. Read More.