On February 24, 2011 final regulations were issued that provide relief for tax-exempt organizations with foreign hedge funds and private equity funds in their investment portfolios from having to report these on the annual Report of Foreign Bank and Financial Accounts (the “FBAR”).
The recently released Federal 2012 Revenue Proposal set forth a provision to change the excise tax private foundations pay on their net investment income to a flat 1.35%.
Recently, the FASB and IASB issued separate proposals that, if finalized, would eliminate operating lease accounting and recognize a right of use asset and liability for all leases. Due to the pervasiveness of operating leases, the change would affect virtually every organization, including not-for- profit organizations.
Citing recent major media exposure of the issue of the use of tax-exempt organizations to conduct political activity, Senate Finance Committee Chairman Max Baucus has instructed IRS Commissioner Doug Shulman to conduct a survey of major 501(c)(4), (c)(5) and (c)(6) organizations involved in political campaign activity.
The FASB has issued proposed Accounting Standards Update (ASU), Disclosure about an Employer’s Participation in a Multiemployer Plan, which would require an employer participating in a multiemployer pension or postretirement benefit plan to disclose additional information to improve transparency about the commitments and risks associated with the plan. The proposed guidance would not affect the current measurement and recognition guidance for an employer’s participation in such a plan.
Almost every not-for-profit entity is affected of the health care reform, which was enacted earlier this year, because virtually every not-for-profit entity provides health care benefits to its employees. Not-for-profit entities must incorporate into their employee benefit plans the myriad and complex provisions of health care reform.
The U.S. Government Accountability Office (GAO) recently published Government Auditing Standards: 2010 Exposure Draft to propose revisions to Government Auditing Standards (the Yellow Book). The proposed update reflects major developments in the accountability and audit profession since the last revision in 2007, with an emphasis on considerations specific to the government audit environment.