FASB Liabilities

 

The FASB Liabilities report calculates liabilities that satisfy FASB 116 and 117 accounting standards for charitable remainder trusts, gift annuities, and pooled income funds. You can save the FASB liability computed for each gift in the gift's FASB Amount field if you wish.

These standards were put in place in the early 1990s to bring uniformity to how charities report gifts and pledges in their financial reports. You may want to provide this report to your financial office annually to help it put together your charity financial statements.

1. Click Compliance > FASB Liabilities on the Menu bar.

2. Enter the calculation, selection, and sorting information required to produce the report you desire. Enter a custom filter to select a more specific group of gifts. There is help available on each field.

3. Click OK to view the report. If you see an error log, see Notes below.

4. Do the following, as needed:

• Print the report.

• Save the report to a file.

• Export raw data for the report.

6. Do one of the following:

• Click "Save New Values in Each Gift Record" to save the FASB liability amount computed for each gift in the report in the gift's FASB Amount field, and then click OK.
  
  The FASB Amount field appears on the Details tab in the Gift Information. The valuation date for the liabilities will be saved in the FASB Date field for each gift, as well.

• Click "Save New Values in Each Gift Record and in the Historical Value Table" to save the FASB liability amount in both the gift's FASB Amount field and as a historical FASB value, and then click OK.
  
  The FASB Amount field appears on the Details tab in the Gift Information. The valuation date for the liabilities will be saved in the FASB Date field for each gift, as well.

• Click "Do not save new FASB amounts" and then OK, or click Cancel if you do not wish to save the FASB liabilities or valuation date from the report.

7.  Click to close the FASB Liabilities page.

 

Notes:

·   Gifts included in report
For a gift to be included in the calculations, the following must be true in addition to any selection criteria entered:

Gift Date is less than or equal to Valuation Date

Gift Status is Currrent or Gift Status is Finished/Severed and Account Closed Date is greater than or equal to Valuation Date

Person Status of at least one associated person is Current/Missing or Person Status of at least one associated person is Deceased and Date of Death is greater than Valuation Date

·   Flexibility in FASB standards
FASB 116 and 117 standards allow charities some flexibility in performing liability calculations. Consult with your financial office to determine the best mortality table and interest rates to use when computing liabilities.

·   FASB liabilities and charitable lead trusts
The liability for a charitable lead trust is the market value of the trust as of the valuation date minus the present value of its future payments.  Unlike for life income gifts, the FASB Liabilities report does not show directly the liability for a charitable lead trust.  Rather, this amount is the Market Value minus the PV of Payments shown on the report.

· Error log
If you see an error log, fix the errors it identifies, then run FASB Liabilities again.

You can print the error log or save the log in a file that you can print or review later. Click Continue and go to the next step in the procedure.

 

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