Dear Clients and Friends,
Welcome to the inaugural edition of the GJC Advisor. The George Johnson & Company team is squarely focused on providing sound financial guidance, value and knowledge to our clients and professional connections to help them grow their businesses. This newsletter is an extension of those goals. Each issue will offer insight on accounting topics that matter to you as well as other matters such as keeping your financial house in order and building profitability. We will also share stories about our dedication to the community and invite you to get inspired, find motivation and join us. We hope you enjoy this first edition of the GJC Advisor.
What You Need to Know: Financial
Statements of Non-Profit Entities
Our firm recently hosted Lee Klumpp, CPA who offered insights on the latest accounting standards updates (ASUs), including the recently-issued ASUs on the presentation of financial statements for nonprofit organizations, revenue recognition, leases, and others. He also expanded on the status of significant and ongoing FASB projects that will affect non-profit organizations. The following article outlines the critical updates, including, but not limited to:
• The technical requirements facing non-profit organizations that will need to be adopted
in the short-term.
• Key transition issues and the effective dates for ASUs that will need to be implemented
in the coming year.
• Important implementation issues in order to prepare to adopt the various ASUs affecting
FASB Issues ASU 2016-14, Presentation of Financial Statements
By Lee Klumpp, CPA, CGMA and Tammy Ricciardella, CPA
The Financial Accounting Standards Board (FASB) released the Accounting Standards Update (ASU) 2016-14,Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not or Profit Entities on August 18, and you can read the full ASU here.
The standard aims to improve presentation of financial information, ultimately making nonprofit financial reporting statements more informative, transparent, and useful to donors, grantors, and other users. This is the first major change to the non-profit financial statement model in over 20 years.
ASU 2016-14 impacts all non-profit entities in the scope of Accounting Standards Codification (ASC) Topic 958. The ASU addresses the following key qualitative and quantitative matters:
• Net asset classes
• Investment return
• Liquidity and availability of resources
• Presentation of operating cash flows
• Disclosures of designation and appropriation
In addition, the ASU includes illustrative financial statements for non-profit entities, which reflect changes made by the new standard.
Get to know GJC Managing Partner,
Hometown: Oak Park, Michigan
How long have you been with GJC? I’ve been with the firm just over
eight months. I started with GJC April 2016.
What drew you to a career in the accounting field?
Entering college, I wasn’t sure of what career path I wanted to take. I started out in
Psychology, but quickly realized that I was on the wrong path. Shortly thereafter, a college teammate who was a Finance major, suggested I focused on a business major. After taking an accounting class and meeting Professor W. Howard Morris, who was an African American CPA, I was inspired to shift my focus and major to Accounting.
What do you find most rewarding about your work?
Being in the client service business is rewarding for me because I am able to help clients with their needs and help them solve problems. Each day looks different and comes with different demands and challenges. I’ve never gotten bored in public accounting.
What’s the best part of being a member of the GJC team?
For me, the Firm’s rich history of providing excellent services to our clients. I like to say we provide Big Four services, at reasonable and fair prices. Also, the Firm’s history includes that of the first African American CPA in the state of Michigan. To be a part of that rich history is an honor.
List your favorite place you have traveled:
Name one item on your “bucket list”:
Own a pet tiger
What is your favorite restaurant in Metro Detroit?
Beans and Cornbread!!
Favorite sports team:
What was your first car (make, model)?
What was the first concert you attended?
Boyz II Men in 1992
George Johnson established GJC 45 years ago in the City of Detroit. Since the firm’s inception, commitment to the community has been a central component of our mission. We consistently identify and fulfill avenues to help fellow Metro Detroiters. From our team volunteering in soup kitchens to celebrating Martin Luther King, Jr. Day as an opportunity to serve, we will continue to seek outlets to lend our collective time and talents to enhancing our community.
George Johnson sweeps up at Capuchin Soup Kitchen during our firm-wide Martin Luther King, Jr. Day of service
The GJC team stops for a photo while working at the Capuchin Soup Kitchen.