Financial Accounting


Statement May Affect Umbrella NPOs

FASB has issued a proposed statement that, if approved, will clarify how United Way and similar NPOs that raise or hold contributions for other charities account for these funds. An organization that supports several community charities, for example, would have to recognize an asset and a liability rather than any contribution revenue when accepting donations for disbursement to specified beneficiaries. Such beneficiaries would then report their interest in these donations as assets and contribution revenue.

The ED also addresses closely related entities, such as a hospital and its affiliated foundation. In this case, the recipient organization (the foundation) would report an asset and contribution revenue when it receives assets from the donor, and the specified beneficiary (the hospital) would report its interest in the net assets in a manner similar to the equity method.

The comment period for Transfers of Assets Involving a Not-for-Profit Organization that Raises or Holds Contributions for Others (product code E146) runs until September 15. To obtain a copy, call FASB at 203-847-0700, ext. 555. FASB also has posted the ED on its Web site, www.fasb.org.



SPONSORED REPORT

Keeping client information safe in an age of scams and security threats

A look at the Dirty Dozen tax scams and ways to protect taxpayer information.

TECHNOLOGY Q&A

How to create maps in Excel 2016

Microsoft Excel 2016 has two new mapping capabilities. J. Carlton Collins, CPA, demonstrates how to make masterful 2D and 3D maps in Excel 2016.

QUIZ

News quiz: IRS enforcement, a hot job, and audit value

The IRS’s 2016 Data Book, a “hot job” of particular interest at this time of year, and insight into how executive and audit committees view the insights from financial statement audits received attention recently. See how much you know with this short quiz.