Management and finance teams in nonprofit organizations often ask for an update as to what is ahead in the world of nonprofit accounting. As of now, we see a couple of things that may be issued or clarified in the coming months.
The long-awaited revised AICPA Audit and Accounting Guide for Not-for-Profit Entities will be issued in the spring. The Financial Reporting Executive Committee (FinREC) of the AICPA issued a working draft of the accounting content of the guide. This proposed guide addresses many new accounting issues that have emerged over the years and includes guidance dedicated specifically to not-for-profit entities. There will be sections that address reporting relationships with other entities, reporting and measuring noncash gifts, programmatic investments and microfinance loans, reporting the expiration of donor-imposed restrictions, and a discussion of the legal and regulatory environment.
The FASB has requested comments on its EITF Issue 12-B “Not-for-Profit Entities: Personnel Services Received from an Affiliate for Which the Affiliate Does Not Seek Compensation”. A final document is expected during the first half of 2013.
The FASB also has a couple of projects in process. Non-for-Profit Financial Reporting: Financial Statements is a standards setting project and Non-for-Profit Financial Reporting: Other Financial Communications is a research project. Currently there are no expected dates of completion for these projects.