GASB Delays Nine Standards
At it’s teleconference meeting on April 14th GASB voted to delay standards by one year due to COVID 19. On April 15th, what has historically been tax day but due to COVID19 has lost that honor, the exposure draft was issued. Comments are due by the end of April to help GASB have a quick turnaround time for issuing a final standard (especially for those upcoming May and June year ends!).
This Week in A & A
https://youtu.be/iZ2A2xvFeRI The second week of April definitely had some major impact on standard setting. The NAC was able to have its first meeting of 2020 which was delayed from March. FASB announced a delay in the leases standard for nonprofit and nonpublic...
Q1 Quarter in Review
The first quarter of 2020 started much like any other first quarter of a the year. However, it didn’t end quite as normal. The impact of COVID really only started to come into play late in the quarter, as such, we expect the brunt of the impact to come in Q1. In the first quarter, the FASB was able to issue 4 final standards including the much awaited ASU 2020-04 addressing reference rate reform. GASB issued the 2020 Omnibus and the AICPA issued SSARS 25 and SAS 139. Time will only tell what the second quarter of 2020 will be. GLS hopes you are staying safe and healthy during these turbulent times!
This Week in Accounting & Auditing
This week found our regulatory agencies working hard to address COVID-19. OMB expanded its administrative relief to entities impacted operationally by current conditions. The AICPA provided guidance on how to audit inventory when you can’t be on site. The SEC provided disclosure guidance to address COVID. GASB has indicated potential delays of two major standards in response to operational issues. FASB has worked with the federal agencies to address loan modifications and TDRs in light of banks helping customers dealing with COVID fallout. Standard setting may be on hold while they all take the time to address the current situation.
OMB M-20-11: UG Administrative Relief when Directly Impacted by COVID-19
OMB has issued administrative relief for those who receive federal financial assistance that is DIRECTLY RELATED to COVID-19. The GAQC has provided clarifying guidance on who the relief is directed to. We expect additional guidance for a broader subset of nonfederal entities due to operational issues in the near future. Universities are also impacted significantly by COVID-19 due to instructional disruption. The Department of ED has also provided guidance on the impact on student financial assistance. This blog reviews the major impacts of this OMB alert.
GASB ED Addressing Component Units and Fiduciary Activities
GASB has issued an exposure draft that will address some implementation issues in GASB 84 and component units while also addressing accounting and financial reporting for Section 457 plans. This is a very important ED but it requires a quick turnaround so comments are due by April 10th to assist in getting these updates out in a timely manner.
GASB Disclosures Exposure Draft
GASB has issued an exposure draft to update the Conceptual Framework for Note Disclosures. The ED describes the types of information that should be disclosed in notes and the types of information that are not appropriate. The proposal introduces the concept of what is “essential” to users and updates the purpose of note disclosures. Comments are due April 17, 2020.
Presentation & Disclosures by Not for Profit Entities for Contributed Nonfinancial Assets
FASB has issued a proposed ASU titled Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets. Gifts in kind have received a lot of attention for pharmaceutical donations but the proposal addresses all contributions on nonfinancial assets. The proposal includes unique presentation for these contributions as well as additional disclosures. Comments are due by April 10th.
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