Discrepancies Between ASU No. 2016-14 and Form 990
Ultimately, the largest issue that early adopters of ASU No. 2016-14 and 2018 (and beyond) Form 990 filers will have to navigate relates to Form 990, Part X, Lines 27–29. Currently, those lines read as follows:
ASU No. 2016-14 replaces three classes of net assets with two:
- Net assets without donor restrictions
- Net assets with donor restrictions
In addition, Form 990, Part IV, Line 10 is a “trigger” question that currently asks, “Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, permanent endowments, or quasi-endowments? If ‘Yes,’ complete Schedule D, Part V.”
Following that line of reporting, Schedule D (Form 990), Part V, Endowment Funds, requires detailed information reporting of endowment funds for the most recent five-year period. Part of that reporting includes reporting on Part V, Lines 2a–2c the percentage of the total endowment funds at the end of the current year broken out among:
On May 10, 2017, the AICPA’s Exempt Organizations Taxation Technical Resource Panel sent a letter to Margaret Von Lienen (Acting Director, Exempt Organizations, Internal Revenue Service) respectfully requesting updates to Form 990 to align with the tenets of ASU No. 2016-14.
The updates requested in the letter concern the following parts of Form 990 and its associated schedules (along with the corresponding instructions):
The letter recommended specific updates to the form as well as methods for those who have adopted ASU No. 2016-14 early to complete the form if it is not updated by their filing deadline.
This document originally appeared in the AICPA’s Not-for-Profit Entities Industry Developments—2018 ©2018 AICPA. All rights reserved. Used by permission.Sign up for e-news and alerts