AICPA Releases 2018 Not-for-Profit Entity Guide
This year’s edition of the Audit and Accounting Guides (“AAG”) Not-for-Profit Entities is now available. Issued last month by the American Institute of Certified Public Accountants, the 2018 guide features information about Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. The Not-for-Profit, AAG also highlights the amended guidance and compares the changes to previous guidance.
Art and Real Estate Clash in Federal Court
When a real estate developer decided to replace 5Pointz in New York City with condominiums, 21 artists filed a lawsuit claiming that demolishing the popular mural space without notice violated the Visual Artists Rights Act. The landmark trial in U.S. District Court in Brooklyn would determine whether graffiti receives federal protection. After three weeks of hearing arguments from both sides, the judge ruled in favor of the artists and awarded them over $6.7 million in damages for their art being destroyed. The ruling is viewed as a precedent for protecting street art. More on this case is available on the Nonprofit Quarterly website.
Churches Now Eligible for FEMA Grants
Congress’ latest budget bill offers permanent eligibility for churches that apply for grants from the Federal Emergency Management Agency’s (“FEMA”) Public Assistance Program. The Bipartisan Budget Act amends the Robert T. Stafford Disaster Relief and Emergency Assistance Act, which sets eligibility requirements for FEMA grants to repair structures intended for nonprofit community centers. The amendment includes a change to the definition of a private nonprofit facility that no longer excludes houses of worship. More on FEMA grants is available on the Nonprofit Quarterly website.
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