Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation...
Transcript of Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation...
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GAIN CONTROL berrydunn.com
Annual NFP Educational SeminarAccounting Update
Presented by: Sarah BelliveauMark LaPradeRenee Bishop
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GAIN CONTROL
AGENDA
Not-for-Profit Reporting Project
Revenue Recognition
The Simplification Initiative
Other Recent Pronouncements
Status of Proposals / Projects
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GAIN CONTROL
What is the point?
• Improve net asset classifications
• Provide information about:– Liquidity– Financial performance– Cash flows
THE NFP REPORTING PROJECT
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GAIN CONTROL
NET ASSET CLASSIFICATIONS:AND THEN THERE WERE TWO
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GAIN CONTROL
Changes to better align with the Statement of Activities
CASH FLOWS
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GAIN CONTROL
THEN…..AND NOW
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Was Operating,
Now Financing
_________
Interest
Cash management
Was Investing,
Now Operating
__________
Purchase of long-lived assets
Contributions restricted for
sameSales of long-lived assets
Was Operating,
Now Investing
___________
Receipt of interest & dividends
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GAIN CONTROL
ENHANCED REPORTING OF EXPENSES
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• By nature andfunction
• Options• Statement• Footnote
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GAIN CONTROL
Changes to better align with the Statement of Activities
MEASURES OF OPERATING ACTIVITIES
Before internal transfers After internal transfers
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GAIN CONTROL
LIQUIDITY DISCLOSURES
• Availability to meet short term needs
• Liabilities that require cash in the near term
• How liquidity is managed
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GAIN CONTROL 10
Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers
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GAIN CONTROL 11
Contract? Performance Obligations?
Transaction Price? Allocation Recognition
STEPS FOR RECOGNIZING REVENUE
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GAIN CONTROL
• Established by the AICPA to address implementation guidance to issues that arise (including “hints” and illustrative samples)
• Issues have been identified, no guidance yet provided
THE NFP TASK FORCE
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But Wait!13
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GAIN CONTROL
The “Simplification Initiative”14
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GAIN CONTROL
ASU 2015-01: Income Statement –Extraordinary and Unusual Items
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GAIN CONTROL
ASU 2015-03: Presentation of Debt Issuance Costs
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GAIN CONTROL
ASU 2015-05: Customer’s Accounting for Fees Paid in a
Cloud Computing Arrangement
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GAIN CONTROL
ASU 2015-07: Disclosures for Investments that Calculate NAV
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GAIN CONTROL
• ASU 2015-02, Amendments to the Consolidation Analysis
• ASU 2014-17, Business Combinations, Pushdown Accounting
• ASU 2014-15, Presentation of Financial Statements –Going Concern
OTHER PRONOUNCEMENTS
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GAIN CONTROL
LOOKINGAHEAD
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GAIN CONTROL
Accounting for Leases – a quick update
Accounting for Financial Instruments: Impairment
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GAIN CONTROL
Accounting for Goodwill
Disclosures of Fair Value Measurements
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GAIN CONTROL
“ASK THE EXPERTS” – FREE RANGE Q & A SESSION
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GAIN CONTROL
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