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NONPROFIT INDUSTRY NEWS
October 2020
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Presentation and disclosure of contributed nonfinancial assets
The Financial Accounting Standards Board (FASB) recently issued Accounting Standards Update (ASU) 2020-07,
Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets.
This ASU requires a not-for-profit entity to present contributed nonfinancial assets in the statement of activities as a line item that is separate from contributions of cash or other financial assets. The term
nonfinancial asset includes fixed assets, use of fixed assets or utilities, materials and supplies, intangible assets, services and unconditional promises of those assets.
To view this article
click here
or for more information or questions contact Andrea Strange, CPA at
astrange@hsccpa.com. See additional article below on further information on this standard.
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CARES Act beomes law
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act or ‘the Act’). Around the clock negotiations and debate during the week of March 23 led to several substantive changes from the previously released language (see our
previous alert). The legislation, now weighing in at over 600 pages, with an additional 200+ pages of appropriations, contains stabilization provisions that address worker retention through Small Business Administration (SBA) loans; unemployment assistance for individuals laid off as a result of state shut-downs or stay-at-home declarations; direct rebate payments to individuals; business provisions including retention credits and expanded use of net operating losses; education provisions; labor-related items; and an emergency relief fund accessible to certain companies. In addition to the economic provisions, the Act addresses the supply of certain medical supplies and emergency drugs, access to health care for COVID-19 payments, and Medicare and Medicaid provisions.
To read the full article,
click here
.
For more information, or for any questions, please contact Lacy Bender, CPA, MBA, at
lbender@hsccpa.com or Michele Graham, CPA, MST, at
mgraham@hsccpa.com.
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FASB addresses insurance, convertible instruments, gifts-in-kind.
FASB voted Wednesday to propose delaying the effective date of its standard on long-duration insurance contracts by one year and to approve two new standards.
The board will issue Accounting Standards Updates (ASUs) on:
- Improving convertible instruments and contracts in an entity’s own equity.
- Not-for-profit accounting for contributed nonfinancial assets, known as gifts-in-kind.
Both ASUs are expected to be issued in the third quarter of this year.
FASB voted to issue a proposal that would grant insurance companies that issue long-duration contracts an additional year to implement ASU No. 2018-12,
Financial Services — Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts. The standard affects contracts such as life insurance and annuities.
To read the full article, please
click here
.
For more information, or for any questions, please contact Shannon Brewer, CPA at
sbrewer@hsccpa.com.
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Treasury issues skinny guidance on employee payroll tax deferral
On August 29, Treasury released Notice
2020-65 (the Notice) in response to
President Trump’s August 8th memorandum requesting a delayed due date for
employee’s share of Social Security tax for the remainder of 2020 (specifically, September 1 through December 31). Previously, the CARES Act deferred the
employer’s portion of Social Security tax for 2020; the tax that is being addressed with current guidance is the employee’s portion of Social Security tax (i.e. not the employer’s portion and not federal income or Medicare tax).
To read the full article, please
click here
.
For more information, or for any questions, please contact Lisa Frank, CPA at
lfrank@hsccpa.com.
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Harding, Shymanski & Company, P.S.C. is a public accounting firm with offices in Evansville, Indiana, and Louisville, Kentucky. We are one of the largest accounting firms in Southern Indiana and Kentucky, providing experienced professionals who look beyond the numbers to the heart of complex issues. Our clients range in size from small proprietorships to billion-dollar corporations, from closely-held and family-owned businesses to publicly traded firms, and span nearly every industry. They all have one thing in common: they count on our expertise to capitalize on their opportunities and make the best of their challenges.
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Evansville Office
21 SE Third Street
Suite 500
Evansville, IN 47708
(812) 464-9161
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Louisville Office
545 S Third Street
Suite 102
Louisville, KY 40202
(502) 584-4142
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Harding, Shymanski & Company, P.S.C
Office locations
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