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Business and Policy Areas
Business and Policy Areas

AICPA Issues Updated Not-for-Profit Audit and Accounting Guide

May 3, 2013

The Audit and Accounting Guide for Not-for-Profit Entities was originally issued by the American Institute of Certified Public Accountants (AICPA) over 15 years ago and had been updated only for conforming changes. In April, the AICPA issued the first comprehensive revision to the guide.

NACUBO, through its participation on the AICPA Not-for-Profit Expert Panel, was involved in overhauling the guide - a process that spanned several years. Among the changes to the guide are:

  • Expanded guidance on reporting relationships with other entities, including examples for reporting relationships with not-for-profit and for-profit corporations, limited liability partnerships, general partnerships, and financially interrelated entities.
  • New sections on: reporting and measuring noncash gifts; contributions of fund-raising materials, informational materials, advertising, and media time or space; below-market interest rate loans; and bargain purchases.
  • Expanded discussion of municipal bond debt, including IRS considerations, third-party credit enhancements, capitalization of interest, extinguishments and debt modifications, and the effects of terms (such as subjective acceleration clauses) on the classification of debt.
  • New guidance for reporting the expiration of donor-imposed restrictions.
  • Expanded discussion on the legal and regulatory environment in which NFPs operate.
  • New guidance on program-related investments and microfinance loans.

The guide is available in both electronic and book form and can be purchased on the AICPA Web site


Sue Menditto
Director, Accounting Policy