AICPA proposes new auditing and accounting guides for nonprofits
August 22, 2012
The American Institute of Certified Public Accountants (AICPA) recently released a working draft of auditing and accounting provisions to nonprofit organizations. Before the Financial Reporting Executive Committee (FinRec) issues a final version of the guide, it is soliciting comments up until October 15, according to The Journal of Accountancy.
The recent draft aims to address issues that nonprofits may now be facing when it comes to auditing and accounting, which weren't factors in the past.
It addresses topics such as general accounting considerations, financial statements and reporting, cash, cash equivalents and investments, fund accounting
and tax or regulatory considerations. Other points of guidance include information about expenses, gains and losses, net assets, property and equipment, programmatic investments and contributions received.
In particular, the report addresses new challenges that may arise when nonprofits partner with other organizations that use a separate set of accounting rules, the Journal of Accountancy points out. There is also additional information about how to account for and report non-monetary contributions, such as gifts-in-kind.
Some auditing and accounting procedures have been made easier given the development of nonprofit fundraising software
, which streamlines processes and may help organizations generate more accurate reports.