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January 13, 2012
A Look Back and Forward in the World
of Nonprofit Accounting
Jeffrey A. Stefan, CPA
Partner
(202) 419-5104
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Looking Back
Jimmy Carter was the first presidentborn in a hospital.
In 1918 a flu epidemic killed 548,000people in the U.S.
Gallaudet University began the
tradition of the football huddle in the1890s, in order to conceal their signed
plays from the opposing team.
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Looking Back at FASB
Created in 1973
117 standards in first 20 years (thru 1993)
6 new standards in the next 10 years
45 new standards (Jan 2005 June 2009)
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2011 Highlights
Supplementary and Other InformationRelated to Financial Statements
Service Organizations
Exposure Draft on Going Concern
Testing Goodwill for Impairment
Private Company GAAP
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IFRS
FASB and IASB signed a MoU in 2002
2006 MoU identified 11 convergence topics
Currently 4 priority projects
- Leasing is most relevant to NFPs
Accounting for Leases
- Initial exposure draft August 2010
- Decision to re-expose July 2011
- Effective date not likely prior to 2014
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IFRS - continued
Current status
- SEC statement / vote
- FASB chimes in
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FASB / NAC
Active Projects
- Nothing other than Leases affecting NFPs
- Mostly closing down the four IFRS projects
Long-term Research Project
- Consolidation
New Agenda Item- Not-for-Profit Financial Reporting
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NFP Reporting Key Recommendations
Revisiting current net asset classification, andhow they may be relabeled or redefined
Improving the statement of activities and cash
flows to more clearly communicate financialperformance
Creating a framework for a Management
Discussion and Analysis section of the financialstatements
Streamlining current NFP specific disclosurerequirements to improve relevance and clarity
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Speaker Biography
Jeffrey Stefan, CPA, is the partner in charge of Tate &Tryons auditing practice and has more than 25 years ofexperience serving the nonprofit sector. In addition to hisextensive audit and tax experience, he has providedconsulting services to organizations such as The World Bank,Public Company Accounting Oversight Board, and ASAE &The Center for Association Leadership in a variety of areas,
including grant compliance, merger due diligence, andinternal controls. He has also been called upon to consult on
a variety of complex issues such as fair value accounting (FAS 157), accounting foralternative investments (FAS 133), split interest agreements, endowmentaccounting (UPMIFA / FSP 117-1), single member limited liability corporations,uncertain tax positions (FIN 48), and interest rate swap agreements. Mr. Stefan has
presented and authored articles on many recent accounting and auditing issuesincluding : FASB Staff Position (FSP) FAS 117-1, Endowments of Not-for-ProfitOrganizations, Educating Your Board About Audits, Understanding Statement ofAuditing Standards (SAS) 103, Audit Documentation, SAS112, CommunicatingInternal Control Matters Identified in an Audit, and A Summary of the new AuditRisk Standards. Jeff is a member of the American Institute of CPAs (AICPA), theGreater Washington Society of CPAs (GWSCPA), and ASAE.
January 13, 2012 Copyright 2012 Tate & Tryon CPAs and Consultants