Update: This is a repost of an article on June 11, 2018. As I mentioned last summer, some newly added comments in this risk alert entered heavily into the decision by an Administrative Law Judge finding the charities complied with GAAP.
Some particular items of note for those who enjoy deep inside-baseball tidbits from the accounting world:
- discussion of GIK, especially paragraph .53 was added this year,
- discussion in paragraphs .53 and .176 are directly responsive to the AG’s argument,
- there is an overlap of ARL staffing with the R&D sector & auditors of that sector, and
- the hard-fought, everybody-does-it-so-that-makes-it-right, spend-$475K-to-fight-the-IRS position on mebendazole has changed from the previously no-good, can’t-rely-on-it, non-representational pricing guide from five years ago now being the AICPA recommended standard for pricing.
So, here are some on-point comments from last summer with a few minor updates:
The AICPA has released the 2018 edition of Not-for-Profit Entities Industry Developments.
If you are a CPA serving the not-for-profit community, you need to read this document each year. It provides a survey of the accounting and auditing issues affecting the nonprofit world.
If you are an auditor, there are several other risk alerts you ought to be reading every year.
If you are working for a nonprofit, these alerts would give you a good survey of accounting issues in general and the audit issues your CPA will be dealing with this year.
Valuation of Gifts in Kind