Yusef Ramelize Portfolio Jun. 2016 | Page 29

The three levels of fair value hierarchy under FASB ASC 820 are described as follows :
Level I : Inputs that reflect unadjusted quoted market prices in active markets for identical assets or liabilities that the Foundation has the ability to access at the measurement date .
Level II : Inputs other than quoted prices that are observable for the asset or liability , either directly or indirectly , including inputs in markets that are not considered to be active .
Level III : Inputs that are unobservable for the asset or liability and that include situations where there is little , if any , market activity for the asset or liability . The inputs into the determination of fair values are based upon the best information in the circumstances and may require significant management judgments or estimates .
Future Adoption of Accounting Standards
In May 2015 , the FASB issued Accounting Standards Update (“ ASU ”) 2015‐07 , Fair Value Measurement ( Topic 820 ). The new guidance removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient . Investments that are measured at net asset value per share ( or its equivalent ) but for which the practical expedient is not applied , will continue to be included in the fair value hierarchy . The update also eliminates the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient . Rather , those disclosures are limited to investments for which the entity has elected to measure the fair value using the net asset value per share practical expedient . This guidance will be effective for fiscal years beginning after December 15 , 2016 , with early adoption permitted . The Foundation ’ s management is in the process of evaluating the impact of this new guidance on its financial statements .
Reclassification
Certain amounts in the 2014 financial statements have been reclassified , where appropriate , to conform to the presentation used in the 2015 financial statements . These reclassification adjustments had no effect on the Foundation ’ s previously reported change in net assets .
Summarized comparative information
The financial statements include certain prior‐year summarized comparative information in total , but not by net asset class and functional categories . Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America . Accordingly , such information should be read in conjunction with the Foundation ’ s financial statements for the year ended December 31 , 2014 , from which the summarized information was derived .
Tax status
The Foundation is an organization exempt from federal income taxes under Section 501 ( c )( 3 ) of the Internal Revenue Code ( the “ Code ”). The Foundation is subject to unrelated business income taxes (“ UBIT ”), if applicable . For the years ended December 31 , 2015 and 2014 , the Foundation did not owe any UBIT .
The Foundation recognizes and measures its unrecognized tax benefits in accordance with FASB ASC 740 , Income Taxes . Under that guidance , the Foundation assesses the likelihood , based on their technical merit , that tax positions will be sustained upon examination based on the facts , circumstances , and information available at the end of each period . The measurement of unrecognized tax benefits is adjusted when new information is available or when an event occurs that requires a change .
Management has evaluated the Foundation ’ s tax positions and concluded that the Foundation has taken no uncertain tax positions that require adjustment to the financial statements . With few exceptions , the Foundation is no longer subject to income tax examinations by U . S . federal or state taxing authorities for the years before 2012 .
Deferred revenue
Contributions related to and received in advance of a fundraising event are recorded as deferred revenue until the actual occurrence of the event , at which time the contributions are then recognized as revenue .
Subsequent events
In accordance with FASB ASC 855 , Subsequent Events , the Foundation has evaluated material subsequent events through April 6 , 2016 , the date that these financial statements were available to be issued . There were no material subsequent events that require recognition or additional disclosures in these financial statements .
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