Fall 2009 issue of Horizons

Raise Your Expectations CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

is organized into areas, topics, subtopics, sections and subsections. The topic 958 is “Not-For-Profit Entities.” Beneath it are a variety of subtopics, subsets of the topic that generally are identified by type or scope. Sections provide the nature of the content — for example, recognition, measurement or disclosure. Subsections allow further segmentation of the content. 10 Overall 60 Relationships 20 Financially Interrelated Entities 30 Split Interest Agreements 205 Presentation of Financial Statements 210 Balance Sheet 225 Income Statement 230 Statement of Cash Flows 310 Receivables 320 Investments — Debt and Equity Securities 325 Investments — Other 360 Property, Plant & Equipment 405 Liabilities 450 Contingencies 605 Revenue Recognition 715 Compensation — Retirement Benefits 720 Other Expenses 810 Consolidation What does this mean to not-for-profit organizations? It means that SFAS Nos. 116 (Accounting for Contributions Received and Contributions Made), 117 (Financial Statements of Not-For-Profit Organizations) and 124 (Accounting For Certain Investments Held by Not-For-Profit Organizations), as well as other SFASs, SOPs, etc., are no longer authoritative. GAAP has not changed, but the content of these materials is now Subtopics under 958 are as follows:

included in FASB ASC. For example, the recognition principles for contributions are discussed in FASB ASC 958-605. Paragraphs 15-17 of FASB ASC 958- 605-55 provide guidance for distinguishing between a donor-stipulated condition and a donor-imposed restriction. FASB ASC 958-205, 958-210, 958-225 and 958-230 contain the standards relating to NFPs’ general-purpose external financial statements. It also means that effective for financial statements for periods ending after September 15, 2009 (September 30, 2009, year-ends and thereafter), these SFASs will no longer be cited within the footnotes. It will certainly take some time for all of us to adjust to these new references, but hopefully over time, we should realize the benefits of the codification.

Questions? Contact:

Judy Murphy, CPA Partner-in-Charge Not-for-Profit Services Group 314.290.3496 judy.murphy@rubinbrown.com

46 u fall 2009 issue