Implementing the financial accounting standards board (FASB) Accounting Standards Update (ASU) 2016-14, Presentation of Financial Statements for Not-for-Profit entities can be confusing. The updated standard states nonprofits must present an analysis of expenses by their function and natural expense classifications in one location, such as in a statement of functional expenses.
Category: Not-For-Profit
Lease accounting standards are changing, aiming to improve transparency and make it easier to compare statements. Here’s what nonprofits need to know.
Charitable giving is appreciated at every level. Any time an individual gives, no matter the amount, it is a precious gift. Some donors may be in a position to give to a nonprofit they are passionate about. In this case, a donor advised fund (DAF) might be an effective way to maximize their gifts. Donor advised funds are charitable investment accounts established at a public charity to support charitable 501(c)(3) organizations and allow donors to take an immediate tax deduc Read More >>
Sending a thank you note after receiving a charitable gift to your nonprofit seems like a simple, but polite, way to recognize a donor. In reality, this acknowledgement is an extremely important piece of the donor/nonprofit relationship.
More Than Thank You
A thank you note is truly more than just a thank you. The IRS imposes recordkeeping and substantiation rules to both nonprofits and to donors.
Donors are responsible for obtaining written acknowledgment from a charity Read More >>
Looking at Leases with Molly Stinn: A Six-Part Series
Molly Stinn, CPA, is an Equity Director at the firm.
The new lease standard presents sweeping changes in the way we think about and record leases in our financial statements. Previous blog posts have discussed elements of the new standards specifically. Understanding the impact of the new standards is essential, but determining a game plan will make the implementation process go much more smoothly.
Transitiona
Read More >>Looking at Leases with Molly Stinn: A Six-Part Series
Molly Stinn, CPA, is an Equity Director at the firm.
FASB ASC 842, Leases, otherwise known as the new lease standard, requires many changes in how we account for leases. The biggest impacts of the new standard will be (a) felt on the balance sheet as substantially all operating leases will now be recognized as right-of-use assets and lease liabilities and (b) reflected by new qualitative and quantitative disclosures.
Qu
Read More >>Looking at Leases with Molly Stinn: A Six-Part Series
Molly Stinn, CPA, is an Equity Director at the firm.
The new lease standard has revolutionized the way we report operating leases. By definition under the new lease standard, an operating lease is “an agreement that has an identified asset and a right to control the identified asset over a period of time, where the agreement does not otherwise meet the finance lease criteria.” We are used to accounting for these leases sole Read More >>
Looking at Leases with Molly Stinn: A Six-Part Series
Molly Stinn, CPA, is an Equity Director at the firm.
The new lease standard has introduced new terminology. What we have become used to calling “capital leases” will become “finance leases” with the implementation of FASB ASC 842. While balance sheet reporting and income statement expense recognition will remain substantially the same for finance leases, the FASB has introduced new terminology with the new lease stan Read More >>
Looking at Leases with Molly Stinn: A Six-Part Series
Molly Stinn, CPA, is an Equity Director at the firm.
Why is there a new lease standard?
In its review of SEC registrants, the Financial Accounting Standards Board (FASB) noted that publicly-held companies disclosed over $1 trillion of off-balance sheet leases. Per the current lease accounting rules, only those leases meeting the capital lease criteria are reported on the balance sheet, while many leases are s Read More >>
Looking at Leases with Molly Stinn: A Six-Part Series
Molly Stinn, CPA, is an Equity Director at the firm.
Business entities and not-for-profit organizations that report their financial statements in accordance with the U.S. generally accepted accounting principles (GAAP) are subject to the accounting standards codification (ASC) promulgated by the Financial Accounting Standards Board (FASB). When the FASB changes U.S. GAAP, it issues Accounting Standards Upda Read More >>
