Mar 15th 2013
By Frank Byrt
Advert Advertise with us
The American Institute of CPAs (AICPA) announced the release of its updated Audit and Accounting Guide: Not-for-Profit Entities. It's available in three formats: e-book, online, and in paperback.
The AICPA's Auditing Standards Board (ASB), Financial Reporting Executive Committee (FinREC), and Not-for-Profit Guide Task Force revised the guide, making significant enhancements to improve user understanding and minimize diversity in practice, the AICPA said.
The guide, which is updated through March 1, 2013, is the first comprehensive revision of the guide since 1996.
Enhancements made to improve user understanding and minimize diversity in practice include the following:
- An expanded section about reporting relationships with other entities. Guidance and examples are provided for reporting relationships with not-for-profit and for-profit corporations, limited liability partnerships, general partnerships, and financially interrelated entities.
- New sections about reporting and measuring noncash gifts, including gifts in kind; contributions of fundraising materials, informational materials, advertising, and media time or space; below-market interest rate loans; and bargain purchases.
- A new chapter on program-related investments and microfinance loans.
- An expanded section about municipal bond debt, including IRS considerations, third-party enhancements, capitalization of interest, extinguishments and debt modifications, and the effects of terms (such as subjective acceleration clauses) on the classification of debt.
- New guidance for reporting the expiration of donor-imposed restrictions.
- Expanded discussion about the legal and regulatory environment in which not-for-profit entities operate.
- Auditing content that has been conformed to the changes resulting from the ASB clarity project, including coverage of audit planning, risk assessment and design of testing, evaluation of misstatements, auditor communications, going-concern considerations, and an overview of group audits.
- Suggestions for audit procedures an auditor might consider as a supplement to the risk assessment procedures.
You can place your order on the AICPA website.