Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

FASB exposure draft on contributions and grants.

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Image courtesy of Adobe Stock.

FASB has released an exposure draft which slightly redefines the distinction between revenues and contributions for the nonprofit world.

Exposure draft is called Not-for-Profit Entities (Topic 958) – Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made.

On 9/11/17 I watched FASB’s one hour webcast on the exposure draft. This is only the second time I’ve seen a presentation on the issue and I haven’t yet dived into the 51 page document. That means I’m just starting to understand the changes.

What I’m going to do here is give a high level introduction. Keep in mind this is just an overview without all the details. Furthermore it is my preliminary understanding after having only heard the presentation twice and looking at the slide deck once. Please don’t cite this in your workpapers!

This exposure draft does not call for any change in how transactions are presented in the statement of activities. Organizations can present particular transactions as either revenue or contributions as they wish. The point was made several times in the presentation that the rules spelled out here determine which model is used for recognizing a transaction, not what presentation is used on the statement of activity.

There is a fantastic graph in the slide deck that provides a good visualization of the current and proposed accounting. It is copyrighted and thus I won’t be presenting it here. I’m sure you’ll be seeing the graphic before you get very far into your study.

Here’s a breakout of how exchange transactions are currently handled. These are also called reciprocal transactions. Currently we think of these as revenue, although the verbal comments in the presentation indicate that is no longer necessarily how exchange transactions must be presented.

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Written by Jim Ulvog

September 12, 2017, 8:08 am at 8:08 am

Posted in Accounting

Wells Fargo staying in the headlines.

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Photo at Wells Fargo San Diego museum in October 2016 by James Ulvog.

When I look at the news about Wells Fargo over the last few months, it is amazing to see the number of individual messes the bank has and the amount of time it is taking to get past the issues. Also odd is that new issues are surfacing every month or two. Here are a few articles that I notices in the last month:

8/15/17 – Emily Glazer at Wall Street Journal – Wells Fargo Elevates Former Fed Governor Elizabeth Duke to Chairman Role – As was previously expected (and reported by Ms. Glazer), the bank will replace its current board chair with the former Federal Reserve governor.  This is not as big a deal as it would otherwise seem. The current board chair would have hit the bank’s mandatory retirement age four months later anyway.

8/18 – Reuters – Wells Fargo troubles shift from phony bank accounts to real ones – The bank disclosed yet another problem in regulatory filings, explaining the Consumer Financial Protection Bureau is looking at the bank improperly closing real accounts.

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Written by Jim Ulvog

September 11, 2017, 8:09 am at 8:09 am

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Permanent injunction halts proposed overtime rule

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Image courtesy of Adobe Stock.

The proposed new overtime rules that would have required overtime pay for anyone earning less than $47,476 a year will not go into effect. I do not know if any parties will try to file an appeal, but doesn’t seem to me that is very likely.

The federal judge who issued a temporary injunction last fall has issued a final ruling that the proposed rules violate federal law. The reasoning (if I understand a condensed explanation correctly) is federal law includes a duties test which the proposed rules would essentially make irrelevant.

For more details, check out a Wall Street Journal article on 8/31/17: Texas Judge Quashes Obama-Era Overtime-Pay Rule.

Article says the current administration is working on a new rule, which would likely set a new dollar threshold, but which would be lower than in the previously proposed rules.

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

Written by Jim Ulvog

September 1, 2017, 9:10 am at 9:10 am

Posted in Uncategorized

Not only will Wells Fargo fake account fiasco not go away, but new fiascos keep appearing – 2

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Photo at Wells Fargo San Diego museum in October 2016 by James Ulvog.

I have accumulated a long list of articles on the mess Wells Fargo has create for itself. Here is the rest of the articles I’ve gathered in the last few months, including two new fiascos. Previous list of articles I’m catching up on are found here.

7/23/17 – Wall Street  Journal – Wells Fargo Discloses Accidental Client-Data Release – Oops.

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Written by Jim Ulvog

August 16, 2017, 6:58 am at 6:58 am

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Another overview of blockchain technology; time to start figuring out this stuff.

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Sure does look like this blockchain technology is going to be a big deal. Might be time to start getting our minds wrapped around the concept.

For starters, check out this short overview:

 

 

For a bit more detail:

8/4/17 – Bill Sheridan at Business Learning Institute – Block chain might remake accounting. The opportunities are huge. – Introductory article is one of the better overviews I have read. It introduces the video shown above.

One sentence description of Block chain, quoting from the article:

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Written by Jim Ulvog

August 15, 2017, 7:31 am at 7:31 am

Not only will Wells Fargo fake account fiasco not go away, but new fiascos keep appearing – 1

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Photo at Wells Fargo San Diego museum in October 2016 by James Ulvog.

I’ve been sitting on a string of articles describing the mess Wells Fargo has created for itself by opening accounts without customers’ permission. That issue keeps hanging around like a bad hacking cough.

At the same time some new fiascos have surfaced.

It is time to get caught up, so here are some articles I saw a few months ago:

4/4/17 – Wells Fargo advertisement in Wall Street Journal – The bank published a full-page public letter from the CEO.

He describe the steps taken by the bank to make things right. I will paraphrase or nearly quote the steps:

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Written by Jim Ulvog

August 12, 2017, 8:30 am at 8:30 am

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Suggestion for coping with massive change that could replace your job: Take full responsibility for developing new skills for yourself.

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Embrace Change” by Iqbal Osman is licensed under CC BY 2.0

The rate of change we are seeing around us is massive. There are threats of automation or artificial intelligence even eating into what is called the white-collar world.

Here’s a suggestion on how you might cope with this overwhelming change:  Take on full responsibility for keeping your skills and abilities current.

8/1/17 – Stephanie Kasriel at Medium – Skill, re-skill, and re-skill again. How to keep up with the future of work. – The rate of change is accelerating and the skills needed to do work in the new economy are changing as well.

Article provides a brief summary of our education system. I will expand that with what I have learned elsewhere. Then I’ll mention a plan to dealing with this turmoil.

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Written by Jim Ulvog

August 7, 2017, 8:45 am at 8:45 am

Posted in Pondering

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