Despite companies reporting issues with accounting for highly inflationary economics, the Financial Accounting Standards Advisory Council ("FASAC") said amending the guidance is not high on the Financial Accounting Standards Board's ("FASB") project agenda. In response last month to an agenda request to add a project on the matter, the FASAC noted that highly inflationary economies are irrelevant to a company's financial results. The FASAC also referenced other risk disclosures provided under the management's discussion and analysis portion of a public company's quarterly reports for why a project is unnecessary. FASAC members acknowledged three issues companies have faced concerning highly inflationary. Read More.
The Securities and Exchange Commission ("SEC") urges public companies to review potential risks they may face when transitioning from the London Interbank Offered Rate ("LIBOR") and provide investors tailored information on the transition period. At the SEC Speaks Conference last week, Shelly Luisi of the SEC's Division of Corporation Finance said companies need to evaluate the LIBOR risks they face before the United Kingdom phases out the benchmark rate in two years. A CorpFin associate director, Luisi advised public companies to identify every contract associated with LIBOR that matures past 2021. She suggested companies review any fallback language to determine. Read More.
A search is underway to find new chairs for the Financial Accounting Standards Board ("FASB") and the Governmental Accounting Standards Board ("GASB"). The Financial Accounting Foundation's ("FAF") Board of Trustees Appointments Committee is looking for candidates to replace FASB chairman Russell Golden and GASB chairman David Vaudt, whose terms conclude June 30, 2020. FAF president and chief executive officer Teri Polley said the selected candidates will help determine the FASB and GASB's future direction to improve financial accounting and reporting standards. Both chairs will serve one seven-year term on their respective boards.
How many revenue streams do your nonprofit have? Some organizations take the simple yet risky approach of having one main income source, and others depend on multiple revenue streams. While having a diversified portfolio sounds like a safer approach to good financial standing, it is not always the case. Nonprofit Quarterly's Mark Hager and Chiako Hung have co-authored an article highlighting the positives and negatives of nonprofits maintaining revenue diversification. Visit the Nonprofit Quarterly website to read the article . If your nonprofit needs a review of your revenue streams, reach out to Cherry Bekaert's Nonprofits group .