Discussion of possible ramifications and compliance issues for AB 1181.

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Nicola White has an article at Bloombergtax.com discussing the ripple effects of AB 1181 along with some pondering on compliance issues for charities and auditors:  California Drug Bill Could Hike Accounting Costs for Charities.

Full disclosure:  I am quoted in the article. Scary step for me is this was my first on-the-record interview. This is only the second time I’ve been quoted in an article.

This article is not behind a paywall.

If you have been following the GIK issue, you will want to read the full article.

It provides a good overview of the bill, background on previous enforcement efforts, and provides a range of perspectives on the practical issues of compliance.

Auditors will have to ponder for a while how to report on the California compliant financial statements.  The 990 filing requirement will need some breakthrough thinking.

Keep in mind the bill allows estimates if the final destination is not known when the meds are received. I’ll guess that will be the situation for the largest volume of meds.

Also, I’ll make a not-so-wild guess that the spread in wholesale prices from Ethiopia to Bangladesh is a teeny tiny amount compared to the spread between U.S. prices and any indicator of international prices.

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