Tuition Revenue Recognition Guidance Issued
The National Association of College and University Business Officers (“NACUBO”) has released a new advisory using tuition to illustrate guidance under Accounting Standards Codification (“ASC”) Topic 606, Revenue From Contracts With Customers. Accounting Advisory 19-01, FASB ASC 606, Revenue From Contracts with Customers: Tuition Revenue, states that a student’s signed financial responsibility agreement authorizes a college or university to consideration, in exchange for promised services, on the date payment is due. The advisory also explains various terms and requirements, including performance obligations, portfolio approach and contract liabilities. More on this Accounting Advisory is available on the NACUBO website.
SEC Commissioner Condemns Registration Requirements for Private Funds
At a recent event hosted by the Bipartisan Policy Center, the Securities and Exchange Commission’s (“SEC”) Hester Peirce expressed criticism about the registration provisions for private funds. The SEC commissioner said such funds are not a systemic risk to the financial system, but they are often viewed as banks. Rather than rely on the Dodd-Frank Act-mandated requirements, she wants to do away with the provisions altogether. While preferring that there is no mandatory registration of private fund managers, Peirce is open to curtailing the requirements. She highlighted the difficulty in determining where the systemic risk comes from in this part. Read More.
DCAA & Other Agency Hot Buttons 2019
By: Curt Smith , Manager and John Ford , Senior Consultant Many contractors deal only with the Defense Contract Audit Agency (“DCAA”) on audit matters. For several years, we have presented a webinar on the latest developments concerning DCAA. 2018 was a slow year for DCAA with few new matters arising. However, a substantial number of contractors do business with other agencies who conduct contract audits. Further, many contractors also receive grants or cooperative agreements from various agencies that have audit requirements in them. In January 2019, Cherry Bekaert presented our annual “Hot Buttons” webinar where we addressed issues with audits by other agencies. Read More.
PCAOB to Clarify Hiring of Hearing Officers
The Public Company Accounting Oversight Board (“PCAOB”) has proposed amendments to affirm that its hiring practices for hearing officers for auditor disciplinary proceedings are subject to approval by the Securities and Exchange Commission (“SEC”). Announced last week, the proposed changes come after last summer’s Supreme Court ruling in Lucia vs. SEC that the agency’s process for hiring administrative law judges was unconstitutional. The Supreme Court stated that under the Appointments Clause of the U.S. Constitution, administrative law judges are inferior officers and must be appointed by the president, a court of law, or a department head (e.g, the SEC). The. Read More.
Proposed State Legislation Addresses Charitable Giving Tax Credits
Several states are introducing bills to counter the negative effects of the Tax Cuts and Jobs Act, especially regarding charitable giving. The new tax law nearly doubles the standard deductions for individuals ($12,000) and couples ($24,000), which makes it less likely that taxpayers will claim itemized deductions when filing this year. Lawmakers in Kansas, New York and Virginia have proposed allowing taxpayers to claim itemized deductions on state returns, even when the standard deduction on federal returns is elected. The Virginia bill also proposes a nonrefundable tax credit to taxpayers that forgo itemizing deductions on federal returns. Arizona legislation has. Read More.
Congress to Review Charitable Giving Tax Deduction Act
In response to the Tax Cuts and Jobs Act, Representatives Chris Smith, R-N.J., and Henry Cuellar, D-Tx., have sponsored a bill to expand charitable giving tax incentives. The Charitable Giving Tax Deduction Act would offer taxpayers a charitable deduction regardless if they itemize deductions. Rep. Cueller said the bill encourages giving back to communities and ensures taxpayers that opt not to itemize receive a deduction for charitable giving. Rep. Smith commented that charitable organizations depend on taxpayers’ generosity and could also benefit under the bill.