Learn to Distinguish Income Tax and Non Income Tax Contingencies, Ensure Proper Disclosure, and Assess Compliance Risks
Accounting for contingencies in nonprofit financial statements has long been required by the Financial Accounting Standards Board. But the distinction between income taxes, addressed in ASC 740 and contingencies, addressed in ASC 450 have muddied the waters for nonprofits. Tendencies have leaned toward insufficient analysis of non income tax contingencies that should be disclosed.
This presentation will help the persons responsible for accurate, timely and transparent financials for nonprofit organizations to define and distinguish between income tax contingencies and non income tax contingencies, establish methodologies for accrual and/or disclosure and to properly record and/or disclose all income tax liabilities and contingencies in the financial statements. Additionally, the nonprofit financial professional will be able to assess the risks related to non-compliance in these matters.
Learning Objectives
- You will be able to define non-income tax contingencies.
- You will be able to explain the differences between contingencies and income taxes for nonprofits.
- You will be able to to recognize the criteria for probable, reasonably possible and remote contingencies and how each are accrued or disclosed.
- You will be able to discuss elements for proper disclosure of contingencies in the financial statements.
Credits
- Live Webinar
- AR CLE 1.0
- Arizona CLE 1.0
- CA MCLE 1.0
- CT CLE 1.0
- HI CLE 1.0
- MN CLE 1.0 (Pending)
- NH MCLE 1.0
- NJ CLE 1.3
- PA CLE 1.0
- RI CLE 1.0
- VT CLE 1.0
- WI CLE 1.0
- WV MCLE 1.3
- CPE 1.2 including Management Services 1.2
Agenda
Introduction
- Overview of the Topic
- Importance of Understanding Non-income Tax Contingencies for Nonprofits
- Objectives for This Session
Understanding Non-income Tax Contingencies
- Definition and Examples
- Key Differences Between Income and Non-income Tax Contingencies
Relevant Accounting Standards
- Overview of ASC 450 (Contingencies) and Its Application to Nonprofits
- Comparison With ASC 740 (Income Taxes) to Highlight Disctinctions
Disclosure Requirements
- When to Disclose Versus Accrue a Contingency
- Criteria for Probable, Reasonably Possible, and Remote Distinctions
- Examples of Proper Disclosure in Financial Statements
Common Challenges and Risks
- Overlooked Non-income Tax Exposures
- Risks of Noncompliance and Audit Detection
- Real-World Examples
Best Practices for Compliance
- Steps to Identify and Evaluate Non-income Tax Contingencies
- Strategies for Accurate Reporting and Disclosure
- Tools and Resources for Nonprofits to Stay Compliant
Q&A
Conclusion
Speakers
Jerry Frick, MBA, ACNPS,
All In One Accounting- Director, CFO/Controller at All In One Accounting, a strategic accounting team that advises entrepreneurs on profitable growth and helps nonprofit leaders amplify their impact
- Has delivered in-person presentations and webinars for organizations such as the Minnesota Council of Nonprofits, Pennsylvania Association of Nonprofit Organizations, Community Foundation of North Central Wisconsin, Nonprofit Leadership Alliance, and Associations North Executive Edge Conference Appeared on podcasts including Tony Martignetti Nonprofit Radio and the Nonprofit Leadership Podcast with Dr. Rob Harter
- Authored various articles and guides focused on Nonprofit topics for AIOA’s website
- Member of Nonprofit Leadership Alliance – Advanced Nonprofit Certified Professional (ACNP) and Nonprofit Finance Group
- M.S degree in accounting, University of Phoenix, Phoenix, AZ; B.A. degree in accounting/management, Anderson University, Anderson, IN
Who Should Attend
This live webinar is designed for executive directors, accountants, directors, officers, controllers, CFOs, tax managers, government officials, and attorneys.
