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
FASB Passes on Fair Value Definition Project
A project to amend the “readily determinable fair value” definition will not be taken up by the Financial Accounting Standards Board (“FASB”). In a 6-1 vote at its March 1 meeting, the FASB declined adding the project to the board’s standard-setting agenda. FASB Vice Chairman James Kroeker said efforts to clarify the definition are unnecessary, but Chairman Russell Golden encouraged staff members to follow up with critics who raised concerns about the definition.
GASB Issues Implementation Guide No. 2016-1
The Governmental Accounting Standards Board (“GASB”) has published Implementation Guide No. 2016-1, Implementation Guidance Update–2016 (Implementation Guide), to address questions concerning newly issued GASB Statements on fair value and tax abatement disclosures. Effective for reporting periods starting after June 15, 2016, the Implementation Guide also covers issues on other topics the GASB has been made aware of, and reinstates previous questions and answers that were updated for recently issued standards on pensions and other postemployment benefits. Implementation Guide No. 2016-1 is available on the GASB Web site.