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New rules clarify accounting for grants and contributions When the Financial Accounting Standards Board (FASB) released new rules for revenue recognition in 2014, contributions were specifically excluded. Now the FASB is offering further guidance in its Accounting Standards Update (ASU) No. 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and Accounting Guidance for Contributions Received

Keep old friends Training a new volunteer is time-consuming and costly. And that’s only one of many reasons why you want to hold on to your volunteers once you bring them into your organization. Their value is high When you consider the value of volunteers, it’s easy to see how they’re like paid employees. After

In the wake of the new tax law and other developments, many nonprofits are looking for ways to solidify their financial footing — including the possibility of merging with another organization. But a merger isn’t something to be entered into lightly. It’s a big step that requires careful planning and consideration. Possible structures The term

In April 2018, the IRS released temporary guidance on the amended limit on deductions for business interest expense for tax years beginning in 2018. Taxpayers were allowed to rely on that guidance while waiting for regulations. The IRS has now published proposed regulations that taxpayers can rely on until final regs are released. The proposed

In August, President Trump tweeted in favor of a six-month reporting system to replace the three-month quarterly and annual filing requirements that U.S. public companies have followed for years. He has tasked the Securities and Exchange Commission (SEC) to review this contentious issue, which pits public companies against their investors and market analysts. SEC research

On Halloween, the Financial Accounting Standards Board (FASB) gave private companies a special treat: long-awaited relief from the variable interest entity (VIE) guidance. Over the years, private companies have described Accounting Standards Codification (ASC) Topic 810, Consolidation, as one of the most complicated areas of U.S. Generally Accepted Accounting Principles (GAAP). Now there’s an easier

The Securities and Exchange Commission (SEC) will soon require auditors to issue expanded reports for public companies. Some companies are having their accounting firms conduct dry runs on previous years’ financial statements to ensure compliance with the new-and-improved auditor’s report. By testing the standard before the effective date, auditors and companies can understand what the

Interpretive guidance from the Securities and Exchange Commission (SEC) temporarily lets public companies use good faith estimates to adjust for the income tax effects of the Tax Cuts and Jobs Act (TCJA). The Financial Accounting Standards Board (FASB) followed the SEC’s lead and also is allowing private companies to use good faith estimates. But the

Auditing standards require auditors to identify and assess the risks of material misstatement due to fraud and to determine overall and specific responses to those risks. Here’s what auditors look for during fraud-risk interviews and why face-to-face meetings are essential. Fraud inquiries Entities being audited sometimes feel fraud-related questions are probing and invasive, but they’re