ASU 2017-02 was issued in January 2017 by the FASB to clarify when a not-for-profit entity (NFP) that is a general partner or limited partner should consolidate a for-profit limited partnership or similar legal entity.
Determining whether an event or an item was an extraordinary item has been a confusing and often burdensome determination for accountants and entities alike. Over the years, an item could be argued for and against the consideration to be treated as an extraordinary item. For example, Hurricane Katrina caused terrible damage and one might consider such an event would be an extraordinary item. However, a hurricane in and of itself is not considered to be unusual or infrequent in nature as hurricanes are a likely event. Although the damage was by the hurricane was catastrophic, it was not deemed and did not meet the requirements to be considered extraordinary. An extraordinary item was previously considered to be an item that was unusual and infrequent in nature. The gain or loss on these items was to be shown segregated from the results of ordinary operations on the statement of activities, net of any tax. In addition, the extraordinary item was to be disclosed in the accompanying notes to the financial statements describing the origin, nature and the amount.
One of the topics talked about all year is how our tax system needs to be greatly improved and just this week, President Trump and Republican Leaders released how they think it could be fixed.
Topics: Tax Planning
The federal government is, by law, exempt from paying state and local taxes. However, this exemption does not apply to organizations with federal or state government contracts, which are designated as agents of the government. In fact, government contractors are subject to specific state and local taxes simply because they are government contractors.
Contractors must be aware of the tax laws specific to the states they operate in, and any localities that impose taxes as well.
Although many private golf and country clubs turned a corner in 2016 and began to attract more members, overall membership and revenue have still not recovered the ground they lost since the onset of the Great Recession. The economic downturn accelerated demographic and lifestyle factors that were already impacting clubs.
Fox Business recently ran an article on a creative way non-for-profit universities have been raising funds. (See the article here). As a basic summary, universities have started renting out dorm rooms to people in order to raise additional funds to support the university. These creative ways to raise additional revenues come as enrollment numbers and state financing have been declining. With these creative fund raising ideas, non-for-profits need to be aware of unrelated business income and what effects these rules could have on their non-for-profit.
Question: Our payroll person remitted our employee retirement plan “safe harbor” money into the profit sharing accounts of participants. Does it really matter or can we just leave it?
Topics: Retirement Planning
If you are a construction contractor reporting long-term contracts on the percentage of completion method (§460(b)(1)) you may be required to calculate look-back interest (§460(b)(2)) on your long term contracts.