Tag Archive for Financial Statements

Implementation of ASU 2016-14 Not-for-Profit Entities (Topic 958), Presentation of Financial Statements of Not-for-Profit Entities

iStock_000010827673_Small-300x199Now that the nonprofit reporting standard has been issued in its final form, it’s time to think about implementation.

Transition Guidance

The update is effective for annual financial statements for fiscal years beginning after December 15, 2017, which means calendar year 2018 and after. Earlier adoption is permitted. The provisions should be applied on a retrospective basis to all prior years presented. However, when presenting comparative financial statements for periods prior to adoption, the following may be omitted from the prior period financial statements presented:

  • Analysis of expenses by both natural and functional classification, unless previously required under the old standard for voluntary health and welfare organizations.
  • Disclosures about liquidity and availability of resources

In the period that the update is applied, the nonprofit should disclose the nature of any reclassifications or restatements and their effects, if any, on changes in the net asset classes for each period presented.

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FASB Progresses Toward Issuance of Exposure Draft to Redesign the Non-Profit Financial Reporting Model

In the summer issue of our Non-Profit Notes newsletter, BlumShapiro partner Marcus Harwood shared the latest accounting update affecting non-profit organizations.

As we have discussed in previous articles the Financial Accounting Standards Board (FASB) is working on a project to redesign the non-profit financial reporting model in order to provide more useful, transparent and consistent information to financial statement users. Marcus’ article outlines the changes and the areas most likely to be affected.

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