Jim Ulvog

Merger and acquisition accounting

New accounting rules for mergers and acquisitions of nonprofit organizations are now in effect.  In the past, when two nonprofit organizations came together, the accounting was essentially to combine the accounting information of the two entities.  This is no longer allowed.

Under the new rules, there are mergers and acquisitions. The accounting for each is quite different. …

Type I and Type II are no more

Type I and Type II subsequent events don’t exist anymore.  The two types of subsequent events are now called ‘recognized’ and ‘non-recognized’ by FASB statement 165, now located at ASC 855-10-50-1.  The terms we grew up with have disappeared.  I’m still trying to work that into my audit memorandums.  May take me a while for that to become second nature.

Here is the original FAS 165, but remember it has been superseded. Go to the codification web site to read the authoritative ASC. (If you haven’t been there before, you have to register to use the site.)

Disclose date of subsequent events evaluation

Don’t forget that FASB statement 165, now located at ASC 855-10-50-1, requires disclosure of the date that the organization has evaluated whether there are any subsequent events that need to be reflected in the financial statements.  That date needs to be described as either the issue date or date the financials were available to be issued.  Unless you are working in the public company arena, I think you will find that ‘available to be issued’ is the norm.

You can read the original FAS 165 here, but remember it has been superseded. Need to register at the FASB web site to read the ASC.

Delay in effective date for all of the rewritten, clarified auditing standards

The Auditing Standards Board is in the process of rewriting all of the Statements on Auditing Standards. They are using a new format for all the clarified and redrafted statements.  The effective date was previously scheduled for periods ending on or after December 15, 2010.  The ASB has moved the effective date back to periods ending on or after December 15, 2012. …