FASB Suggests Aligning Collections Definition for Museums
Last week, the Financial Accounting Standards Board (“FASB”) announced a proposal to match the U.S. GAAP definition of a “collection” of priceless artwork and historical treasures with the description museums rely on for operability and accreditation. Issued in Proposed Accounting Standards Update No. 2018-250, Not-for-Profit Entities (Topic 958): Updating the Definition of Collections, the amendment would change one of the criteria under the collection definition. It would also let proceeds from a sold art piece or artifact to be used to protect the rest of the collection. As a result of the amendment, museums and related entities would only have. Read More.
FASB Issues Standard for Contributions
A new Accounting Standards Update (“ASU”) by the Financial Accounting Standards Board (“FASB”) will have a significant impact on financial statements of entities who receive grants. ASU No. 2018-08, Not-For-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made , differentiates grants and similar contracts with government agencies and others as reciprocal transactions (exchanges) or nonreciprocal transactions (contributions). The new standard also establishes new indicators for when a contribution is conditional. The amendments in ASU No. 2018-08 apply to all entities that receive or distribute contributions, but they do not apply to transfers of assets from governments to companies. Public companies and nonprofits that have issues, or is a conduit bond obligor for,. Read More.
FASB Proposes Improved Collaborative Arrangements Guidance
A newly proposed Accounting Standards Update (“ASU”) by the Financial Accounting Standards Board (“FASB”) offers organizations improved guidance regarding collaborative arrangements. The proposed ASU, Collaborative Arrangements (Topic 808): Targeted Improvements , focuses on changes to generally accepted accounting principles related to collaborative arrangements. One proposed change includes adding unit-of-account guidance under Topic 808, which would align the guidance with Topic 606, Revenue from Contracts with Customers, limited to when a company is reviewing the nature of Topic 606. The FASB also proposes two clarifications, such as defining when certain transactions concerning collaborative participants must be accounted for as revenue under Topic 606 when the collaborative member. Read More.
EQUIP Program Loses Support
Almost half the participants of a program aimed to provide nontraditional providers access to federal financial aid have pulled their support. Educational Quality through Innovative Partnerships (“EQUIP”) sought to help nontraditional providers achieve high-quality standards and positive student outcomes, but the program is taking longer than expected to launch. As a result, three of initial eight pilot programs are no longer part of EQUIP. It is uncertain why EQUIP is taking so long to develop, but one study suggested that many participants were unsure about how the program’s success would be measured. More on the EQUIP program is available on InsideHigherEd.com.
Data Collection Form Revisions Proposed
In a Federal Register notice issued on April 3, the Federal Audit Clearinghouse (“FAC”) is proposing amendments to the Data Collection Form (“DCF”). Titled Proposed Information Collection; Comment Request; Data Collection Form for Reporting on Audits of States, Local Governments, Indian Tribes, Institutions of Higher Education, and Non-Profit Organizations , the notice outlines four significant changes to the Data Collection. The final Form changes would be effective for fiscal periods ending in 2019, 2020 and 2021. Those proposed changes include: Expanding the audit finding information that auditors include in the DCF to contain the audit finding’s actual text; Asking auditors to state whether they sent a written communication to the auditee concerning any non-audit finding issues should be directed to those responsible for governance matters;. Read More.
Quiz Tests Knowledge of Yellow Book and Single Audits
Available on the Journal of Accountancy website is a quiz on audit engagements performed under Government Auditing Standards (“Yellow Book”) and Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Created by the American Institute of Certified Public Accountants Professional Ethics Division, the quiz aims to test how much auditors know about governmental auditing and single audits. Take the quiz on the Journal of Accountancy website.