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.
Nonprofits Concerned with Contribution Classifications for Revenue Standard
Several nonprofits are confused over whether to classify a contribution as having a restriction or a condition with respect to the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard. The issue is significant to nonprofits because it impacts the timing of recording the revenue from the contribution, but FASB Assistant Director Jeffrey Mechanick recently cautioned that it will ultimately be in the hands of an organization’s financial report preparers to decide. At last week’s meeting between the FASB and its Not-for-Profit Advisory Committee, Mechanick said due to the amount of judgment in practice, the board is attempting to offer improved. Read More.
FASB Goodwill Impairment Standard Issued
Last week, the Financial Accounting Standards Board (“FASB”) published Accounting Standards Update (“ASU”) No. 2017-04, Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment. A result of the Simplification Initiative, the standard simplifies how a company tests goodwill for impairment by eliminating “Step 2”, which measures impairment loss by comparing the carrying amount of goodwill to its implied fair value. In its news release, the FASB said the ASU will allow companies to measure goodwill impairment as the excess of the reporting unit’s carrying value over its fair value. Stakeholders had complained that the current impairment test creates. Read More.
Topics: Accounting Standards Update "ASU", Business Combinations (Topic 805), Financial Accounting Standards Board "FASB", Goodwill Impairment Testing, Intangibles (Topic 350), Nonprofits, Securities and Exchange Commission "SEC", simplification initiative
Nonprofits Receive Updated Consolidation Reporting Guidance
Helping nonprofits with consolidated reporting disclosures, the Financial Accounting Standards Board (“FASB”) recently issued Accounting Standards Update (“ASU”) No. 2017-02, Not-for-Profit Entities—Consolidation (Subtopic 958-810): Clarifying When a Not-for-Profit Entity That Is a General Partner or a Limited Partner Should Consolidate a For-Profit Limited Partnership or Similar Entity. ASU No. 2017-02 clarifies when nonprofits that are general partners should consolidate their holdings in a for-profit limited partnership. The ASU will move the current content from Subtopic 810-20, Consolidation—Control of Partnerships and Similar Entities, that was deleted in ASU 2015-02 and move it to Subtopic 958-810 for nonprofits. The FASB says the. Read More.