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AICPA Issues New Accounting And Audit Guide For Not-For-Profit Entities

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The AICPA recently issued a newly updated Accounting and Audit Guide for Not-For-Profit (NFP) Entities.

The new guide, updated as of March 1, 2013, is the first comprehensive revision of the guide since 1996 and reflects all changes to audit standards resulting from the AICPA Clarity Project (Statements on Auditing Standards 122 through 127) which are effective for audits of financial statements for periods ending on or after December 15, 2012.

The AICPA recently issued a newly updated Accounting and Audit Guide for Not-For-Profit (NFP) Entities.

The new guide, updated as of March 1, 2013, is the first comprehensive revision of the guide since 1996 and reflects all changes to audit standards resulting from the AICPA Clarity Project (Statements on Auditing Standards 122 through 127) which are effective for audits of financial statements for periods ending on or after December 15, 2012.

The guide is developed by the AICPA Not-For-Profit Entities Expert Panel and Guide Task Force to assist management of not-for-profit entities with preparing financial statements in conformity with accounting principles generally accepted in the United States of America.

The guide is also prepared to assist audit practitioners with the conducting of and reporting on audit engagements of not-for-profit entities. Although the guide identifies many requirements included in the FASB ASC, it is not an authoritative source as is the FASB ASC.

The new guide focuses on uniform reporting standards and is intended to be easier to understand than previous versions. Some of the new additions and improvements to the guide include:

  • New guidance for reporting the expiration of donor-imposed restrictions.
  • Expanded section about municipal bond debt, third-party credit enhancements, capitalization of interest, extinguishments and debt modifications.
  • New sections on programmatic investments and microfinance loans.
  • New sections about reporting and measuring noncash gifts, including gifts-in-kind, contributions of fundraising materials, informational materials, advertising, below-market interest rate loans, and bargain purchases.
  • Expanded section on reporting relationships with other entities and improved guidance for reporting relationships with not-for-profit and for-profit corporations, limited liability partnerships, general partnerships, and financially interrelated entities.
  • The new guide includes an Appendix B-Mapping and Summarization of Changes-Clarified Auditing Standards, which provides a cross-reference of sections in the superseded auditing standards to the applicable sections of the clarified auditing standards. It also identifies the changes between the superseded and clarity standards that could impact audit practitioners.

A copy of this newly updated Accounting and Audit Guide for Not-For-Profit Entities can be purchased from the AICPA website by clicking here.

 

Readers should not act upon information presented without individual professional consultation.

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