Accounting

Disclosing which fiscal years are open to audit by tax authorities has been required for nonpublic companies for several years. An explicit requirement came into play with Technical Practice Aid 5250.15.

Effective March 2015 that TPA was deleted. The requirement now is based on a comment buried in the Basis for Conclusions of ASU 2009-06, which says disclosure of open tax years is only needed when there are material unrecognized tax benefits.

Impact of TPA 5250.15

That requirement has produced a standard comment on all nonpublic entity financial statements that looks something like this:

The entity files income tax returns with the U. S. and (state) governments. With few exceptions, the entity is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 20×1.

The AICPA has deleted TPA 5250.15. That type of comment will not be required unless the entity has material unrecognized tax benefits.

What changed?

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Disclosure of open tax years is now only required for a nonpublic entity that has material unrecognized tax benefitsRead More »

Here are two opportunities to get an introduction to the massive rewrite of financial reporting rules for NPOs. No travel. No cost beyond your time.

CliftonLarsonAllen is offering a free one-hour webinar about the exposure draft on Thursday, May 21 at 2:00 p.m. Central Time.

You can register for the CLA webinar here.

As I mentioned earlier, FASB is offering a free webinar on May 12 at 1:30 p.m. Eastern Daylight Time. Their session will run for two hours and is good for two hours of CPE.

You can register for the FASB webinar here.

Both free. FASB session offers 2 hours CPE.

(Cross-post from my other blog, Nonprofit Update.)

I’ll start listing the helpful articles providing background on the major changes to financial reporting of charities. Here’s the first articles I have seen:

• 4/22 – CliftonLarsonAllen – Proposed FASB Standards Foretell Multiple Changes for Nonprofits – Bit more detail than the typical introductory article.
• 4/22 – Journal of Accountancy – FASB proposes significant changes to not-for-profit reporting

Mentioned this previously:

• 4/22 – FASB press release – FASB proposes improvements to not-for-profit financial statements

(Cross post from my other blog, Nonprofit Update.)

FASB is offering a free webinar on the exposure draft to overhaul financial reporting for charities. Session will be good for 2 hours of CPE.

Webinar will be offered on May 12 at 1:30 p.m. Eastern Daylight Time.

You can register at this page.

(Cross-post from my other blog, Nonprofit Update.)

FASB has released the long-awaited revision to reporting by nonprofit organizations.

The FASB’s press release can be found here.

The document along with a link is: Proposed Accounting Standards Update- Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954) – Presentation of Financial Statements of Not-for-Profit Entities.

(Cross-post from my other blog, Nonprofit Update.)

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FASB releases exposure draft on overhaul of NPO financial reportingRead More »

Debt issue costs will soon need to be classified as a reduction in long-term debt instead of a deferred charge on the asset side of the balance sheet.

This change will be required by FASB’s ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.

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ASU 15-03 – Debt issue costs will be moving to the other side of the balance sheetRead More »

FASB has issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items (Subtopic 225-20) – Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. This eliminates the extraordinary item treatment we have known since we were in college.

The requirement to disclose unusual or infrequent items remains.

Implementation

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Extraordinary change in GAAP: No more extraordinary itemsRead More »