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How to Comply with Accounting Standards for Nonprofits

The Charity CFO

Accounting standards for nonprofits are probably not the first thing you think about, but are crucial for your organization to succeed. In the United States, these Generally Accepted Accounting Principles (or GAAP) are set by the Financial Accounting Standards Board (FASB).

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Updated Accounting Standards for In-Kind Donations (2022)

The Charity CFO

If your nonprofit uses donations of supplies, services, and even time to help fund your operations, you need to know about recent changes in accounting standards for in kind donations. We’ve paraphrased the actual text of the standards for this article.

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Pro Forma Statements vs. GAAP Statements: What’s the Difference?

CFO News Room

Pro Forma Statements vs. GAAP Statements: An Overview. The generally accepted accounting principles (GAAP) require American-based companies to adhere to uniform reporting standards that govern accounting in the U.S. GAAP Statements.

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How Alpha Hides in GAAP Accounting: Return on Equity

CFA Institute

You can find significant alpha in the mechanics that drive GAAP accounting.

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Refreshing Revenue, the Cash Conversion Cycle, and Free Cash Flow

CFA Institute

GAAP sometimes misrepresents business reality. We can use that fact to generate some alpha.

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The End of Accounting? Sustaining Financial Reporting

CFA Institute

Coronavirus Economics Financial Statement Analysis Performance Measurement & Evaluation Standards, Ethics & Regulations (SER) accounting standards GAAP Regulations Standards and Ethics

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Don’t Overlook Accounting Comparability

CFA Institute

Low accounting comparability can be costly for both firms and managers. Drivers of Value Economics Financial Statement Analysis Performance Measurement & Evaluation Standards, Ethics & Regulations (SER) accounting standards GAAP Regulations Standards and Ethics

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California CPAs Call For Crypto Accounting Clarity

PYMNTS

Certified Professional Accountants (CPAs) in California are calling on an industry watchdog to clarify standards for cryptocurrency accounting, with expectations that corporations will increase their use of cryptocurrencies moving forward. ” The committee also suggested in its letter that standards approach cryptocurrency accounting the same way they would for a corporation holding and using foreign currencies. GAAP,” the letter stated.

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Single-Step vs. Multiple-Step Income Statements

CFO News Room

must adhere to Generally Accepted Accounting Principles ( GAAP ), which are accounting standards issued by the Financial Accounting Standards Board (FASB). Many private companies elect to follow GAAP, even though they aren’t legally obligated to do so.

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Absorption Costing vs. Variable Costing: What’s the Difference?

CFO News Room

Absorption costing and variable costing are methods used to value companies’ work in progress and inventory, for accounting purposes. For reporting purposes, absorption costing is required under the Financial Accounting Standards Board’s Generally Accepted Accounting Principles (GAAP).

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Accrual Accounting vs. Cash Basis Accounting

CFO News Room

Accrual Accounting vs. Cash Basis Accounting: An Overview. The main difference between accrual and cash basis accounting lies in the timing of when revenue and expenses are recognized. Accrual Accounting. Under this method, revenue is accounted for when it is earned.

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Understanding Goodwill vs. Other Intangible Assets

CFO News Room

One of the concepts that can give non-accounting (and even some accounting) business folk a fit is a distinction between goodwill and other intangible assets in a company’s financial statements. There is a lot of overlap and contrast between the IRS and GAAP reporting. .

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Zack Meyer Joins The Charity CFO as Director of Quality Assurance

The Charity CFO

Zack joins us after two decades as a not-for-profit accountant in both public accounting and the nonprofit industry. In this new role, he will serve as one of our in-house experts on existing and emerging nonprofit accounting standards and auditing best practices.

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Parallel Accounting is a Key Tool for Global Companies with Multiple Reporting Requirements

Bramasol

One important side effect of the ongoing trend toward globalization is the need to comply with a range of different accounting principles as well as with disparate reporting and compliance mandates. Asset Accounting (FI-AA). Inventory Accounting (MM and ML).

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IBM Cognos Controller: Financial close management managed by the office of finance

Future CFO

Finance organizations regularly face the challenges of meeting strict deadlines and satisfying data quality requirements for closing the books and delivering accurate financial statements.

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Fund Accounting for Nonprofits & Charities

The Charity CFO

And the issue of restricted funds presents unique bookkeeping and accounting challenges for a nonprofit that a for-profit company doesn’t face. This accounting system is called fund accounting. Who’s Required to Use Fund Accounting? . What is fund accounting? .

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What is Quality of Earnings?

CFO Share

Audited financial statements focus on compliance with GAAP accounting standards, whereas Quality of Earnings reports focus on the company’s earnings history and potential. Significant and/or unusual accounting policies such as: Changes in accounting methods.

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Financial Statements Nonprofit: What You Really Need

The Charity CFO

You have a primary responsibility to your donors, grantmakers, and other stakeholders to find ways to share these statements while still following the highest accounting standards. Let’s discuss them in detail so you can know what you need to do to stay compliant and accountable.

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Nonprofit Accounting Services: The Right Solution

The Charity CFO

What should you look for when evaluating nonprofit accounting services? Yes, they might have a board member or volunteer who takes care of the finances, but they often lack specific expertise in nonprofit accounting. Benefits of Nonprofit Accounting Services.

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Digital acceleration to drive finance leadership in 2022

Future CFO

What does this mean to the finance and accounting team of 2022? Increasingly more Finance & Accounting (F&A) functions will adopt a hybrid work model in which CFOs provide the tools to finance staff to productively work from anywhere.

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Understanding Functional Expenses for Nonprofits

The Charity CFO

Don't hire the wrong accountant for your nonprofit! The #1 accounting mistake that nonprofits make is hiring the wrong people to help them. Get this FREE guide to discover what you need to do to ensure you hire the right accountant, bookkeeper, or CFO the FIRST time.

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How the New Revenue Recognition Rules Could Impact Budgeting and Planning

Planful

To date, most of the focus has been on the transactional accounting impact of the new guidelines. However, the revenue recognition guidance offered under US GAAP vs. IFRS has differed and was in need of improvement. So for a number of years, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have been working to converge their guidelines for revenue recognition.

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Closing The Books, With An Eye On Process And Automation

PYMNTS

In a survey conducted by the Institute of Management Accountants (IMA), and sponsored by Blackline, titled “Process Automation in Accounting and Finance,” examining the attitudes and concerns of 750 financial professionals surrounding accounting and month-end closing processes, manual activities remain prevalent — at the cost of time and money. The optimization of the accounting process, he said, is difficult at times with limited staff.

IFRS 63
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Big Four Seek Guidance On Trade Finance

PYMNTS

Top accountancy firms are asking the Financial Accounting Standards Board (FASB) to clarify how corporates should report on supplier finance programs that are in place, according to Compliance Week reports on Friday (Oct. GAAP guidance does not clarify how to classify these programs as trade payables or debt, which has been a source of debate for several years.

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The most and least complex jurisdictions for financial compliance in APAC

Future CFO

China’s financial environment is the region’s most complex, followed by Vietnam, South Korea, Malaysia and Indonesia, according to TMF Group’s report titled Accounting & tax: The global and local complexities holding multinationals to account. By contrast, Hong Kong, Australia, Singapore, New Zealand and Philippines were seen as the least complex for multinational companies when it comes to accounting and tax laws and practices, the report states.

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Best Practices from the CFO Suite

BlueLight

My motivation was to understand the responsibility of the CFO suite, the process of billing to accounting, and the software tools available to run an effective finance office. One is accounting: you need this done properly to inform the next two. Accounting ?—?Nearly

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Bringing Personalization Tech To The CFO’s Office

PYMNTS

With the newest software iteration, personalization allows CFOs to choose how accounting information is maintained and also should be differentiated from customization, which Bres said can typically include more time spend on changing software and training users. GAAP and international accounting standards, is another boon to efficiency, said Bres.

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Data Update 1 for 2021: A (Data) Look Back at a Most Forgettable Year (2020)!

Musings on Markets

While the universe of companies is diverse, with approximately half of all firms from emerging markets, it is more concentrated in market capitalization, with the US accounting for 40% of global market capitalization at the start of the year.