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Revamping Not-for-Profit Financial Statements: What You Need to Know About Implementation of FASB’s New Standards

Author: Neely Duncan, CPA.; Ryan Parish, CPA.

Source: Volume 17, Number 01, November/December 2017 , pp.1-6(6)

Abstract:

In August 2016 the Financial Accounting Standards Board (FASB) issued “Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities” (ASU 2016-14). The requirements included in ASU 2016-14 are widely considered to be the most significant changes to financial statement presentation requirements in over two decades for not-for-profit entities (NFPs) issuing financial statements in compliance with generally accepted accounting principles (GAAP) in the United States. This article provides an overview of the changes that will be required to NFPs’ financial statements once ASU 2016-14 is in effect. Includes a Sample Liquidity Disclosure.

Keywords: Accounting Standards Update No. 2016-14; Net Asset Classifications; Statement of Cash Flows; Functional Analysis; Enhanced Disclosure Requirements; Investments; Fixed Assets; Liquidity Disclosure

Affiliations: 1: Lane Gorman Trubitt, LLC; 2: Lane Gorman Trubitt, LLC.