More articles on GIK valuation. The issue isn’t going away.

November 20, 2019, 10:09 am

Image courtesy of Adobe Stock.

Nicola White, writing at Bloomberg Tax, has several articles following up on the GIK valuation issue after the veto of California AB 1181 by the governor. If you have been following the issue, you will want to check her recent writing.

End of this post discusses the departure from FASB of a project manager long involved with nonprofit rulemaking.

The articles, with a few highlights:

11/4/19 – Bloomberg Tax – Small Fixes Eyed for Charity Accounting as California Backs Off – Article describes why FASB is strongly resistant to any change in GIK valuation.

Read the rest of this entry »


FASB provides outline for new disclosures on GIK

November 19, 2019, 7:52 am

Image courtesy of Adobe Stock.

On November 6, 2019, FASB discussed the GIK valuation project.

Back on August 21, 2019, FASB set the scope for the project to include only nonfinancial GIK with measurement (that means valuation) off the table. Staff was directed to work toward an exposure draft (ED) that would address only presentation and disclosure. That means an ED will only describe how GIK is presented on the statement of activity and what information is explained in the notes.

According to minutes of the 11/6/19 meeting, available here, FASB ratified that previous scope.

Read the rest of this entry »


A Halloween costume that would make any CPA pass out from fright – an auditor performing one pension plan audit

October 31, 2019, 7:40 am
Photo courtesy of DollarPhotoClub.com

Photo courtesy of DollarPhotoClub.com

Amid the cute little kids in their funny costumes, this pleasant Halloween night there was a grown man in a suit at the door asking for candy. White shirt, red tie, gray pinstripe.

Not so scary, thought I.

“What are you dressed up as?”

“An auditor,” came the reply.

That’s not frightening, since I’ve been an auditor for a long time. But it did explain the old-style, standard issue uniform.

So, putting on my peer reviewer hat, I asked, “what audit work do you do?”

“Oh, only one pension plan….

.

.

.

.

Read the rest of this entry »


How big is the world of donated medicine? Updated estimate.

October 29, 2019, 7:42 am

Medical factory storage warehouse. Image courtesy of Adobe Stock.

This post updates the previous estimate of the volume of donated medicine for the relief & development community of the nonprofit world.

There are a few charities receiving big volumes of medicine donated by the pharmaceutical companies. Those charities then get all those meds distributed to charity clinics and hospitals around the world. That is incredible work which is improving the lives of millions upon millions of poor people around the world.

Following is an estimate of the size of that sector, with subtotal of charities with over $20 million of donated medicine and supplies, under $20 million, and zero reported meds:

Read the rest of this entry »


Additional sentencing, plea deals, and charges in college admissions scandal

October 28, 2019, 8:39 am

Entrance to the University of Southern California. Image courtesy of Adobe Stock.

In the last week and a half, there have been two more parents sentenced with four entering plea deals.  Additional charges have been brought against parents who are still fighting the charges.

One parent released

Read the rest of this entry »


Six more parents sentenced in “Varsity Blues” admissions scandal.

October 17, 2019, 4:04 pm

Residence of Felicity Huffman for the next 14 days: Federal Correctional Institution_Dublin California Overhead View by Prison Insight is licensed under CC BY 2.0

That makes #4 through #9 that have been sentenced.

First of the parents has reported for her free federal housing.

Other articles:

10/15/19 – NPR – Felicity Huffman Begins 14-Day Prison Term in College Admissions Scandal – She reported early for her 14 day sentence.

On 10/16/19, the Bureau of Prisons Inmate Locator website shows her with register 77806-112, located at Dublin FCI, with release date of 10/27/19.  That means she would have actually reported on 10/13/19, I think.  Dublin FCI is low security federal institution with an adjacent low security satellite camp. It is located in Alameda county, California.  See overhead photo above.

10/15/19 – Wall Street Journal – In College-Admissions Case, Lawyers for Coaches, Others Move to Dismiss Charges – A number of parents are filing motions that the conspiracy charges are cast too wide, including parents who weren’t participating with anyone, thus the charges are more severe than they ought to be. I don’t understand the purpose of the argument, but appears to be effort to separate some of the less-involved parents from the taint of being publicly associated with the more severe cases.

Details of sentencing

Read the rest of this entry »


Presentation at CalCPA Accounting and Auditing conference: “California GAAP” – A case study in valuation of donated medicine

October 16, 2019, 11:20 am

Image courtesy of CalCPA.

On October 24 at 3:55 I will be speaking at the California Society of CPAs Accounting and Auditing Conference where industry speakers and experts will provide comprehensive updates on current issues and emerging trends. The conference runs the 24th and 25th.

My topic is valuation of donated medicine in the not-for-profit community. I have the privilege of working with a 75 minute block of time.

If you are able to attend the session you will gain an understanding of the long-term enforcement effort at the federal and state level regarding valuation of donated meds. My concern is that the governor’s veto of AB 1181 is not the end of the enforcement actions considering what has happened over the last 9 years.

Title of the session is “California GAAP” – A case study in valuation of donated medicine.

Overview of the session from the conference schedule:

Read the rest of this entry »