FASB has provided an explanatory article and video for the exposure draft on gifts-in-kind disclosures.
The ED would require presenting GIK on a separate line of the statement of activity and additional disclosures in the notes. Most significant new disclosure would be the valuation techniques and inputs used for calculating value of the GIK.
The exposure draft will require the amount of donated nonfinancial assets to be disclosed on a separate line in the statement of activities. Some additional disclosures will be required. The main new disclosure is the technique and inputs used to value the GIK along with the principal market for the items.
The draft is titled Not-for-Profit Entities (Topic 958) / Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets.
Fourteenth sentence for a parent in the college admissions scandal was handed down today. Also, feds have recommendations for the next three parents already scheduled for sentencing, which will be heavier than previous cases.
The LA Times provided an update on federal recommendations on 2/4/20: Admissions scandal: Prosecutors seek longest prison sentences yet for four California parents.
Prosecutors assert the four worked on the scheme for 11 years, cumulatively paying $1.6M to help out nine children.
Recap of status for these four, each of whom have pleaded guilty on two felony counts:
Perhaps a couple weeks late, but too good not to mention:
Credited to the South Kitsap High School vocal group in Port Orchard, Washington.
Hat tip: Behind the Black.
How much does it cost for a pharmaceutical company to get one new drug onto the market? As with all variations of “what does it cost” questions the answer is complicated. Any such answer requires explanation of what the calculation means.
Other posts discussing this issue:
According to a 2016 study by Tufts Center for the Study of Drug Development, here is their calculation of what it takes to get one compound to the point of where it is approved for sale:
The study was based on a random selection of 106 drugs from 10 pharmaceutical companies. Since that is a random selection presumably the calculation would apply to all medicines.
On 12/31/19 the IRS published the reference amounts for mileage rates for 2020. Their announcement:
Two more parents have been sentenced in the college admissions scandal. Been watching the news lately and no more sentences have been declared in the last six weeks.
According to my count of the status listed by Wikipedia, there are 6 parents who have a plea deal and are awaiting sentencing. Another 15 parents are awaiting trial.
New sentencing since my last post on 10/28/19:
FASB update presentation today (12/19/19) indicated the GIK disclosures project is moving forward as previously outlined.
An exposure draft is expected to be released in January 2020. There will be a 60 day comment period.
Previous post described the outline and limited scope of the project as approved by FASB:
In condensed form, the project will require separate disclosure of donated goods on the face of the statement of activities and require some additional disclosures in the notes. There will not be any change in valuation of donated medicine.
Breaking news today suggests the so-called parking lot tax, which creates a tax liability for charities in certain circumstances for the cost of parking provided to employees, might be repealed shortly.
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.
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.
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….
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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:
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
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