CPAs performing work for not-for-profits will find guidance dedicated specifically to them in a working draft of a proposed audit and accounting guide, Not-for-Profit Entities, released by the AICPA Financial Reporting Executive Committee (FinREC).

The AICPA requests that comments on the proposed guide be provided during a 60-day period, ending Oct. 15. FinREC will consider these comments before issuing a final version. The draft is available at

Enhancements to the proposed guide, which addresses many new accounting issues that have emerged over recent years, include:

  • A greatly expanded section about reporting relationships with other entities. The guide provides guidance and examples for reporting relationships with not-for-profit and for-profit corporations, limited liability partnerships, general partnerships, and financially interrelated entities.
  • New sections about reporting and measuring noncash gifts, including gifts in kind; contributions of fundraising materials, informational materials, advertising, and media time or space; below-market interest rate loans; and bargain purchases.
  • A greatly expanded section about municipal bond debt, including IRS considerations, third-party credit enhancements, capitalization of interest, extinguishments and debt modifications, and the effects of terms such as subjective acceleration clauses on the classification of debt.
  • New guidance for reporting the expiration of donor-imposed restrictions.
  • Greatly expanded discussion about the legal and regulatory environment in which not-for-profit entities operate.

The working draft does not include general and specific auditing considerations, analytical procedures, or reporting or considerations of internal control.


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