FASB Reaches Decisions on Revenue Recognition Guidance for Nonprofits
Progress continues on the Financial Accounting Standards Board’s (“FASB”) project on the revenue recognition of grants and similar contracts by nonprofits. At its Wednesday meeting, the FASB reached decisions on the following matters: The proposed amendments to distinguish between conditional and unconditional contributions will pertain to both a resource provider and a recipient. To satisfy the definition of a “donor-imposed condition,” a right of return or a releasing of the promisor from their responsibility to transfer assets must be present in the agreement. In order to be considered a condition, the agreement must indicate that the recipient is only entitled. Read More.
Forthcoming Accounting Guidance Updates to Impact Nonprofits
Some of the Financial Accounting Standards Board’s Accounting Standards Updates will certainly have an effect on nonprofit organizations. As the standards’ effective dates draw near, the American Institute of Certified Public Accountants (“AICPA”) has highlighted five standards nonprofits should become familiar with: Going concern requirements Consolidation requirements Simplifying the presentation of debt issuance costs Fair value disclosures when net asset value per share is used Inventory measurement More on these standards is available on AICPA.org. In addition, Cherry Bekaert’s Melisa Galasso will host an AICPA webinar on April 25 to offer nonprofits guidance on these Accounting Standards Updates.
Topics: Accounting Standards Update "ASU", AICPA, American Institute of Certified Public Accountants "AICPA", Consolidation, Debt Issuance Costs, Fair Value Accounting, FASB, Financial Accounting Standards Board "FASB", Going Concern, Inventory, Nonprofits
Oregon Nonprofit Survey to Reflect Equity and Inclusion
In a change from previous years, the Nonprofit Association of Oregon is updating the questions in its annual 100 Best Nonprofits to Work for in Oregon survey to reflect equity and inclusion. The change is being credited to the nonprofit sector shifting its focus to creating an equitable workforce. Oregon Business’ Kim Moore says that local philanthropy has spearheaded the change, as some donors are considering equity and inclusion in their grantmaking efforts. More on the Nonprofit Association of Oregon’s survey changes is available on the Nonprofit Quarterly.
The Nation’s Largest Art Museums Lack Women Directors
A collaborative study between the Association of Art Museum Directors and the National Center for Arts Research reveals a lack of women directors among the country’s largest art museums. According to the study, only one of the nation’s 13 largest museums is run by a female. Further, 30 percent of institutions with budgets over $15 million have women as a director. That number significantly drops when considering the 20 institutions with the largest budgets; only three of those 20 institutions have female directors. More on the gender gap at art museums is available on the Nonprofit Quarterly website.
How Nonprofits Can Address Revenue Recognition Issues
Some companies are beginning to implement the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard and the board’s standard on nonprofit financial reporting. For nonprofits, however, one of the main challenges they face is whether certain revenue transactions are considered contributions or exchange transactions. In addition, when reviewing transactions, what is considered a conditional contribution or an unconditional contribution? For more nonprofits and revenue recognition, visit The Journal of Accountancy. As always, Cherry Bekaert’s Nonprofits group can assist with the implementation of the FASB’s revenue recognition standard and your financial reporting needs.
How Form 990 Can Benefit Nonprofits
Tax season is here, which means nonprofits are preparing for the submission of their annual Form 990 or 990-EZ. What some nonprofits might not be aware of, however, is that the form is an opportunity to promote their efforts to prospective donors. Philanthropic strategist Bruce DeBoskey recently identified which information on Form 990 could be of interest to potential donors. Such areas of interest include a nonprofit’s mission statement, the use of program-related investments, and lobbying activities. More on Form 990 is available at the Nonprofit Quarterly.