FASB Issues Proposed Guidance on Personnel Services Received from an Affiliate
August 10, 2012
In an effort to resolve diversity in practice regarding how not-for-profit organizations (NFPs) treat personnel services received from an affiliate, the Financial Accounting Standards Board (FASB) recently issued proposed guidance for public comment.
The proposal, "Personnel Services Received from an Affiliate for Which the Affiliate Does Not Seek Compensation (Topic 958)," would require an NFP to recognize the value of services provided by an affiliate's personnel. The value would equal the cost recognized by the affiliate for the personnel providing the services. The proposed guidance would apply only to the NFP's standalone financial statements.
The key points of the proposed guidance are:
- The affiliate must directly or indirectly control, be controlled by, or be under common control with the NFP receiving the services.
- The affiliate must not intend to seek compensation from the NFP for the personnel services provided.
- The NFP receiving the services must produce standalone financial statements.
- Services of any nature (administrative, specialized, etc.) must be recognized.
The proposed ASU is not expected to have a significant impact on independent institutions. However, NACUBO would like to hear from institutions that may be affected by the proposed guidance. The comment deadline is September 20, 2012.
Director, Accounting Policy
- NACUBO Responds to GASB's Fair Value Proposal
- IRS Again Issues 1098-T Fine Notices
- SEC Approves Money Market Fund Reform
- 2014 Planning and Budgeting Forum
September 22-23, 2014
- 2014 Tax Forum
September 28-September 30, 2014
- 2014 Global Operations Forum
September 30-October 1, 2014
- 2014 Intermediate Accounting and Reporting - Fall
October 13-14, 2014
- WEBCAST: Strategic Tuition Assessment and Tuition Restructuring
Thursday, September 4, 2014 1:00 PM ET
- ON-DEMAND: Are Shared Services Right for Your Organization – The KU Journey
- ON-DEMAND: VIRTUAL: 2014 Annual Meeting
- ON-DEMAND: FASB's Proposed NFP Reporting Changes
- ON-DEMAND: VIRTUAL: Student Financial Services Conference
- ON-DEMAND: VIRTUAL: Higher Education Accounting Forum
- ON-DEMAND: VIRTUAL: Global Operations Support and Compliance Forum
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis