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Offering our expertise, guidance and thought leadership on issues and topics that affect organizations. This section delivers articles to help simplify the complexities businesses face in an ever expanding and changing environment.

In 2012 San Francisco voters approved complex and sweeping changes to the city’s business tax and annual business registration fees, via Proposition E. The measure replaces the existing payroll-based tax with a tax based on gross receipts and increases business registration fees, beginning this year.

On June 2, 2014, the Treasury Department and IRS released final and temporary regulations (TD 9666) for publication in the Federal Register relating to the election of the research and development alternative simplified credit (ASC).

A fascinating fad…or the next evolution of fundraising? Seems it’s what everyone is asking these days about the Bitcoins, Dogecoins and Peercoins of the cyber world. So, let’s take a look at how few early-adopting nonprofits have experienced some initial success in accepting these “cryptocurrencies” as donations.

The Financial Accounting Standards Board (FASB) has issued guidance that lays out new rules for financial reporting on discontinued operations. The rules reduce the number of asset disposals that companies must present as discontinued operations in their financial statements. But they also expand the disclosures that are required when discontinued operations are reported.

It’s the classic disconnect—you provide a thorough presentation of your organization’s financials, only to be met with awkward silence by your board. Your financial statement covered it all: change in net assets, fluctuation in cash and accounts payable and a discussion of restricted assets. Yet, eyes are glazed and bodies shift uncomfortably.

The Office of Management and Budget (OMB) finalized and released comprehensive new federal grant reform guidelines on December 26, 2013. Known as the "Super Circular" or “Omni Circular," the new rules are intended to consolidate guidance on administrative requirements, cost principles and audit requirements for federal awards. These changes are currently effective for federal agencies and will become effective for grant recipients as of December 26, 2014, and for 2015 single audits (year-end December 31, 2015) and after.

On March 26, Armanino hosted a roundtable “Key Reporting and Benchmarking Best Practices for Nonprofits” for top-tier CFOs from the Bay Area’s larger nonprofit organizations. One of the key takeaways from our discussion centered around the fact that nonprofits that aren’t benchmarking their data against themselves and their peer organizations are at a disadvantage, because they’re missing out on the financial insights that benchmarking can bring. As a result, we wanted to share some basic guidelines to get your nonprofit thinking about the value benchmarking could bring to your organization.

The Financial Accounting Standards Board (FASB) has issued new guidance that permits private companies following Generally Accepted Accounting Principles (GAAP) to, in some circumstances, elect not to consolidate the financial reporting from variable interest entities (VIEs) that lease property to them. It may apply in situations where an owner of a private company is also an owner of a second business entity that leases property to the company.

Quick Review of Reporting Requirements

The ACA enacted Internal Revenue Code (IRC) Sec. 6055, which requires health care insurers—including self-insured employers—to report to the IRS about the type and period of coverage provided and to provide this information to covered employees in statements. The information must be reported by Jan. 31 (March 31, if filed electronically) of the year following the calendar year in which the coverage is provided (i.e., reports are due January 31 or March 31, 2015, for calendar year 2014).

Long-awaited FASB, IASB guidance significantly changes revenue recognition in financial statements

The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have issued new joint guidance that addresses one of the most important measures investors use when assessing a company’s performance and prospects — revenue. FASB’s version, communicated in Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, standardizes and simplifies the revenue recognition process for customer contracts across different industries and geographic locations. It also requires more comprehensive footnote disclosures for all types of public and private companies.