annual nfp educational seminar accounting update€¦ · accounting • asu 2014-15, presentation...

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GAIN CONTROL berrydunn.com Annual NFP Educational Seminar Accounting Update Presented by: Sarah Belliveau Mark LaPrade Renee Bishop

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Page 1: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

GAIN CONTROL berrydunn.com

Annual NFP Educational SeminarAccounting Update

Presented by: Sarah BelliveauMark LaPradeRenee Bishop

Page 2: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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AGENDA

Not-for-Profit Reporting Project

Revenue Recognition

The Simplification Initiative

Other Recent Pronouncements

Status of Proposals / Projects

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Page 3: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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What is the point?

• Improve net asset classifications

• Provide information about:– Liquidity– Financial performance– Cash flows

THE NFP REPORTING PROJECT

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Page 4: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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NET ASSET CLASSIFICATIONS:AND THEN THERE WERE TWO

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Page 5: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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Changes to better align with the Statement of Activities

CASH FLOWS

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Page 6: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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THEN…..AND NOW

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Was Operating,

Now Financing

_________

Interest

Cash management

Was Investing,

Now Operating

__________

Purchase of long-lived assets

Contributions restricted for

sameSales of long-lived assets

Was Operating,

Now Investing

___________

Receipt of interest & dividends

Page 7: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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ENHANCED REPORTING OF EXPENSES

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• By nature andfunction

• Options• Statement• Footnote

Page 8: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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Changes to better align with the Statement of Activities

MEASURES OF OPERATING ACTIVITIES

Before internal transfers After internal transfers

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Page 9: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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LIQUIDITY DISCLOSURES

• Availability to meet short term needs

• Liabilities that require cash in the near term

• How liquidity is managed

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Page 10: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers

Page 11: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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Contract? Performance Obligations?

Transaction Price? Allocation Recognition

STEPS FOR RECOGNIZING REVENUE

Page 12: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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• Established by the AICPA to address implementation guidance to issues that arise (including “hints” and illustrative samples)

• Issues have been identified, no guidance yet provided

THE NFP TASK FORCE

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Page 13: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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But Wait!13

Page 14: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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The “Simplification Initiative”14

Page 15: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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ASU 2015-01: Income Statement –Extraordinary and Unusual Items

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Page 16: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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ASU 2015-03: Presentation of Debt Issuance Costs

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Page 17: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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ASU 2015-05: Customer’s Accounting for Fees Paid in a

Cloud Computing Arrangement

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Page 18: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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ASU 2015-07: Disclosures for Investments that Calculate NAV

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Page 19: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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• ASU 2015-02, Amendments to the Consolidation Analysis

• ASU 2014-17, Business Combinations, Pushdown Accounting

• ASU 2014-15, Presentation of Financial Statements –Going Concern

OTHER PRONOUNCEMENTS

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Page 20: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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LOOKINGAHEAD

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Page 21: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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Accounting for Leases – a quick update

Accounting for Financial Instruments: Impairment

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Page 22: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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Accounting for Goodwill

Disclosures of Fair Value Measurements

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Page 23: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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“ASK THE EXPERTS” – FREE RANGE Q & A SESSION

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Page 24: Annual NFP Educational Seminar Accounting Update€¦ · Accounting • ASU 2014-15, Presentation of Financial Statements – Going Concern OTHER PRONOUNCEMENTS 19. GAIN CONTROL LOOKING

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