Financial Accounting News

California Drug Donation Anti-Fraud Bill ‘Short-Sighted’

Sept. 16, 2019, 9:34 PM

A California bill intended to prevent charities from inflating the value of donated drugs and medical devices is “short-sighted” and could cause accounting confusion nationally, a Financial Accounting Standards Board official said.

One state exempting its charities from even a narrow part of U.S. accounting rules could spark questions for organizations that solicit donations in California but aren’t headquartered in the state, FASB assistant technical director Jeff Mechanick said Sept. 16 at a meeting with representatives from not-for-profit groups.

“We’re certainly sympathetic about the need to regulate bad actors, but when we set standards, we have to keep the...

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