June 18, 2021 - FASB ASU 2020-07 requires new presentation and disclosure standards for contributed nonfinancial assets, also known as gifts-in-kind. Here’s what nonprofit organizations need to know.
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About Frank Jakosz
Frank serves as Partner and Quality Assurance Director at CapinCrouse and has more than 50 years of public accounting and nonprofit expertise. He has a deep understanding of nonprofit organizational best practice financial functions and operations, and his expertise includes financial reporting and analysis, investments, internal controls, endowments, and grants management. As the firm’s Quality Assurance Director, Frank provides oversight of all functions of internal quality assurance, including continuing professional education, systems and processes, and monitoring and implementing new technical standards. Frank is a Chartered Global Management Accountant (CGMA) and holds an AICPA Not-for-Profit Certificate.
FASB Approves Accounting Updates to Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial AssetsOctober 15, 2020 3:34 pm Leave your thoughts
October 15, 2020 - FASB has issued an ASU intended to improve transparency in the reporting of contributed nonfinancial assets, also known as gifts-in-kind, for not-for-profit organizations.
June 26, 2020 - FASB ASU 2020-05 allows certain companies and organizations that have not yet applied the revenue recognition and leases guidance to delay their implementation by one year.
Assessing an nonprofit’s policies and procedures related to valuing material gift-in-kind (GIK) transactions is an important part of an NFP audit. Because there is no single source of pricing that is appropriate for valuing GIK donations, it falls on the NFP to arrive at an appropriate estimate of fair value. Here are some key considerations.
Since the standards for recognizing contributions at their fair value were issued in 1993, NFPs have been challenged to measure the value of the myriad contributions they receive. This controversial area is once again being addressed by watchdog agencies and state attorneys general and, thus, is one that NFPs should navigate with care.