What Non-Profits Need to Know About ASU 2018-08

The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2018-08. This update improves and clarifies the guidance regarding contributions received and contributions made.

The board found that there was a lack of clarity and consistency in how grants and contracts were characterized as either exchanges or contributions. In addition, they found that non-profit organizations differed in how they determined if contributions were conditional or unconditional.

“That’s important because that distinction between conditional vs. unconditional impacts the pattern of revenue recognition,” said Christine Botosan, FASB Board Member.

top tab folder labeled grants related to ASU 2018-08

ASU 2018-08 provides criteria for determining between exchanges or contributions by looking at whether the provider is receiving commensurate value in return for resources transferred. This clarification will help organizations determine if the transfer should be treated as a contribution (nonreciprocal transaction) or an exchange (reciprocal) transaction.

Note that the “commensurate value” described above is value to the provider, not to the general public. So, funds transferred from New York State would be considered a contribution unless New York State itself receives commensurate value.

If commensurate value is not provided, the organization should determine if the transaction is a third-party payment for an existing exchange transaction (such as Medicare, Medicaid, Pell Grant, etc.) If commensurate value is not provided, and the transaction isn’t a third-party payment, it should be accounted for as a contribution.

The ASU also provides additional detail on how to distinguish conditional contributions from unconditional contributions, as well as the difference between donor-imposed conditions and donor-imposed restrictions. Conditional contributions must include a barrier that must be overcome and a right of return or right of release. If a contribution is determined to be unconditional, it must be analyzed to determine if it is restricted or unrestricted.

ASU 2018-08 applies primarily to non-profit organizations, however it can apply to organizations that receive or make contributions of cash and other assets, including businesses. It does not apply to transfers of assets from governments to businesses.

The amendments in this ASU are effective for reporting periods beginning after June 15, 2018 for non-profit organizations and public companies serving as resource recipients (and December 15, 2018 for other organizations). For non-profit organizations serving as resource providers, the amendments are effective for reporting periods beginning after December 15, 2018 (and December 15, 2019 for other organizations.) Early adoption is permitted.

For more information on ASU 2018-08, visit https://www.fasb.org/home.

For more information on Insero’s non-profit solutions, visit https://inserocpa.com/clients/non-profits.html or contact us today.

Tax Update: September 2018

Tax Reform
A closer look at the new pass-through deduction proposed regulations
Initial thoughts, observations and insights on several key areas of the new pass-through deduction proposed regulations.

Trending in Tax

Wayfair, sales tax, and economic presence laws
Economic sales and use tax nexus laws are gaining momentum as states make a direct challenge to traditional physical presence standards.

How to structure executive compensation in a competitive market
Effective executive compensation includes strategy, a mix of components and metrics closely aligned with the organization’s goals.

Ninth Circuit finds transferee liability in asset sale
Former shareholders found liable for tax from asset sale as transferees because the subsequent stock sale lacked economic substance.

 

Book on desk open with pen

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Infographic: 8 Reasons to Work for Insero

In recent years, Insero has consistently been named one of the Best Accounting Firms to Work for by Accounting Today and Best Companies Group. This annual list recognizes 100 top firms across the U.S. We have also been selected as one of Rochester’s Top Workplaces by the Democrat and Chronicle and Energage and one of Central New York’s Best Places to Work by Business Journal News Network and BizEventz.

With locations in Rochester, Ithaca, Corning, Cortland, and Watkins Glen, we cover much of the state of New York, but rest assured that at Insero you’re not just a number, you are an individual with aspirations. We work with you to craft your career to match your interests and future plans. Don’t just take our word for it, see what our employees have to say!

Need a few more reasons? Check out the infographic below, and visit our website at www.inserocpa.com/career to take your career to The Highest Standard.

8 Reasons to Work for Insero Infographic

Infographic Reads:

Top 8 Reasons to Work for Insero

It’s no secret that Insero & Co. has been consistently ranked locally and nationally as a great place to work. Here are just a few of the reasons why:

Our People

At Insero, our people are our greatest asset. From partners to interns, we hire the best people and cultivate a culture of open communication, teamwork, and trust, so that co-workers feel like family.

Balance

Work-life balance is one of the keys to happiness and success. Insero’s generous paid time off and flexible scheduling can help you achieve that balance, and our travel bonus programs provide compensation for time spent on the road.

Your Comfort

You should be comfortable where you work. That’s why at Insero, we encourage employees to decorate and make their workspace their own and our “dress for the day” philosophy allows for a more relaxed dress code (including jeans) depending on daily activities.

Recognition

We appreciate a job well done. That’s why Insero is committed to recognizing our employees’ good work in a variety of ways, from spot bonuses and formal evaluations to Spotlight, our peer recognition app.

Your Health

From annual flu shots, healthy snacks, and standing desks to team sports and active outings, Insero’s Wellness Committee supports a variety of ways to help maintain your health. We also offer a variety of competitive health insurance packages with options for vision, dental, and savings account dollars.

Your Future

Your individual strengths and interests should help guide your career. By utilizing your advisors, crafting individual development plans, and participating in various training programs and leadership opportunities, you can identify and achieve your personal goals. In addition, our Innovation Committee is committed to gathering feedback and exploring new ideas to keep us all moving forward.

Education

Insero is dedicated to making sure you get the education you need throughout your career, including assistance with CPA exam costs and a CPA license bonus. Our Training Committee also supports ongoing education through our tuition reimbursement program, continuing professional education, association memberships, and soft skills trainings.

Community

We take pride in giving back to the community. All employees are encouraged to take part in community service. Whether it be a monetary donation on behalf of the firm or time off to volunteer for a cause, Insero’s Charitable Giving Committee is dedicated to making a difference.

Now is a Great Time to Revisit Your Will

The Tax Cuts and Jobs Act is making a dramatic impact on will drafting. There are many changes, but one of the most impactful is that the estate tax, gift tax, and generation skipping tax lifetime exclusion has been doubled for years beginning in 2018 and ending on December 31, 2025. If your will was drafted before the TCJA was signed into law on December 22, 2017, there is a chance that your estate planning goals will not be accomplished by your current will structure. You may be leaving too much or too little to an intended loved one or charity.

For example, if your will contains a provision leaving your children an amount equaling your available federal estate tax exclusion with your remaining or excess assets going to your spouse, there is a possibility that your spouse will not receive the amount you originally intended her/him to receive when you pass away. This is because the lifetime exclusion amount has increased from $5,490,000 to $11,180,000 per taxpayer. In essence, your children may potentially receive an amount that is twice what you intended when you drafted your will. If your total assets do not exceed $11,180,000, your spouse will not get a dime pursuant to your will.

Photo of paper reading last will and testament with a fountain pen

If you are charitably inclined, there is also a possibility that charities may not receive what you intended under your will. For instance, if your will states that your children will receive an amount equal to your remaining lifetime exclusion and that your remaining wealth should go to named charities, the charities may receive fewer assets (or even nothing), depending on the value of your estate. If the value of your estate is less than $11,180,000, the charities will not get a dime.

As you can see, it is important to meet with your estate planning team regarding your current will to ensure your wishes are still being met under the new law. Insero’s Estates & Trusts Group can work together with you and your attorney to help ensure your wishes are met. Contact us today to learn more about our team and how we can help.

Tax Update: August 2018

Tax Reform
U.S. tax reform international implications
RSM’s Ramon Camacho and Ayana Martinez discuss the TCJA and BEPS with BEPS Global Currents.
Estate planning subsequent to the enactment of tax reform
Estate planning strategies to help minimize future estate, gift and generation-skipping taxes for estates in excess of the exemption. This article explores tips and traps associated with estate planning strategies to consider.

Trending in Tax

Frequently asked questions on country-by-country reporting
A guide for multinational corporations regarding country-by-country reporting questions and base erosion profit shifting. These regulations are based on model legislation from the Organisation for Economic Co-operation and Development (OECD) and are part of the project addressing base erosion and profit shifting (BEPS).

Stock options and section 409A: Frequently asked questions
An explanation of the section 409A considerations that companies need to be aware of when issuing stock options.

Economic Insight 

The Real Economy: Volume 44
In this issue we discuss the growing risk to key industries and the middle market economy. The hit to the economy caused by the taxes on imports and exports will spread asymmetrically across the industrial ecosystems that make up the domestic economy. Based on our conversation with officials in Washington, it is apparent that the middle market will bear a disproportionate burden of adjustments from trade tariffs and should prepare accordingly.

 

two people with laptops, pencils, and paper, planning for tax reform international implications

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Non-Profit Update: July/August 2018

New standards for nonprofits present their own challenges
New standards for nonprofit financial statements and revenue recognition will need to be implemented over the next two or three years.

How IT outsourcing strengthens security for nonprofits
The evolving complexity of strong cybersecurity underscores the value of an outsourcing partner dedicated to keeping cybercriminals out. It often requires just a series of emails to get senior finance executives to begin looking beyond their own IT departments to safeguard their businesses against cyber-hackers.

GDPR enforcement is here…is your organization prepared?
General Data Protection Regulation (GDPR) noncompliance could mean potentially significant fines and penalties. Organizations must know where they stand and how to react before it’s too late. The following infographic provides key insights into GDPR compliance requirements, helping your organization understand critical elements of the regulation.

Nonprofit tax reform resource center
The recently enacted Tax Cuts and Jobs Act has produced widespread tax law changes for exempt organizations. Learn more about the latest updates in our resource center. Our resource center features the latest in developments related to the potential effects of the new tax law for exempt organizations.

 

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest insights for non-profit organizations.

2018 Reader Rankings Names Insero Top Winner in 7 Categories

Rochester’s 2018 Reader Rankings celebration was held on Wednesday, August 1, 2018 at the Joseph A. Floreano Rochester Riverside Convention Center. Leading up to this event, the Rochester Business Journal and The Daily Record spent months collecting more than 3,800 nominations followed by 46,000 votes in 87 different categories including accounting, finance, education, real estate, technology, entertainment, and top employers. This voting process culminated in the celebration event, where the top winners in each category were revealed.

 

“The room was really packed and many local businesses were present,” said Nancy Catarisano, Managing Partner of Insero & Co. CPAs. “It was an exciting evening and I was proud to represent our firm in accepting our awards. It was a privilege to be able to accept these on behalf of everyone on our team.”

Lisa Fitzsimmons and Nancy Catarisano of Insero & Co. display award certificates presented at the 2018 Reader Rankings ceremony in Rochester

Insero & Co. CPAs was recognized at the celebration as Top Winner in 7 categories:

 

Best Accounting Firm

Best Overall Company to Work for (76-250 employees)

Best Company Culture

Best Employee Recognition Program

Most Innovative Workplace

Best Overall Leadership

Best Training Program

 

Insero was also recognized as a Top 8 Winner for Best Forensic Accounting and Insero Wealth Strategies was recognized as a Top 3 Winner for Best Wealth Management. For more information on the awards and winners, click here.

 

“We would like to say thank you to all of our clients, employees, and friends of the firm for taking the time to vote for Insero,” said Catarisano. “We are honored to have such great support in our community.”

2018 Reader Rankings Top Winner Certificates presented to Insero & Co. CPAs by the Rochester Business Journal and The Daily Record

Rochester-based Insero & Co. CPAs is an accounting and business advisory practice with five locations serving New York State. A full-service public accounting firm, Insero provides attest, tax and consulting services to government agencies, colleges and universities, non-profit organizations, and businesses ranging from privately held family businesses to multi-national corporations. These clients represent many industries, including service, manufacturing, distribution, high-tech, telecommunications, education, social services, and real estate. For more information, visit www.inserocpa.com.

Page 1 of 32123...Last »