July 2015

FASB FYI: Exposure Draft Nonprofit Financial Statements

Edelstein is currently working on generating comments to provide to FASB with respect to the proposed nonprofit reporting standards. Upon the formal release of all comments, we’ll ensure to share our feedback with you.

Knowledge Management Enables Nonprofits to Fulfill Their Mission

Knowledge management (KM) is the process of choosing and using tools and systems to gather, organize, share and use information effectively within and between individuals, organizations, and groups. When considering the implementation of a KM system, there are 4 key issues to think through. At the top is organizational commitment, as it will take time and effort to complete the task. The remaining tips include seeking advice and guidance from an expert in managing knowledge and information organization, connecting the dots to ensure you’re matching the right tool(s) to the right job, and fostering a culture of sharing knowledge.

Revenue Recognition effective date delayed by one year

After financial statement preparers shared concerns about not having enough time for implementation, FASB voted to delay the effective date of the new revenue recognition standard by one year. Due to the announced delay, the new standard would apply in annual reporting periods beginning after December 15, 2017. Once implemented, the standard will provide more principles-based guidance for revenue recognition than companies that report under the U.S. GAAP are currently accustomed to. This is good news for nonprofits who have earned income from contractual arrangements.

Do I Want or Need a Financial Statement Audit?

It is common for many nonprofit organizations to question whether or not they need an audit. As you may know, there aren’t any federal requirements for an independent audit unless the nonprofit receives more than $750,000 in federal funds in a single year (Single Audit). However, even if there aren’t specific requirements, you may still wish to have your financial statements audited. This article will help you understand audits, reviews, and compilations as well as the benefits of having an audit.