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
- Broad Coalition Presses for Expansion of Employer-Provided Tuition Benefits
- New GASB Standard Tackles Fiduciary Activities
- New Report Details Charitable Giving to Colleges and Universities
- WEBCAST: Planning Components of Civil Discourse
Wednesday, March 15, 2017 1:00PM ET
- WEBCAST: NACUBO Live! 2017 Student Financial Services Conference
- ON-DEMAND: Legislative Lunchcast: A 30-Minute Washington Update from NACUBO
- ON-DEMAND: Compliance Challenges for the New EPA Hazardous Waste Rule
- ON-DEMAND: The ROI of Student Success: Practical Considerations for Measuring and Conveying the Financial Value of Student Support Services
- ON-DEMAND: NACUBO Live! Student Financial Services Conference