The Financial Accounting Standards Board (FASB) is pleased to announce an upcoming webcast that will discuss the requirements of Accounting Standards Update 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, including related implementation ideas.
Through this session, participants will learn about the clarifications and improvements to existing guidance, as well as implementation ideas in:
- Presenting two classes of net assets on the face of the balance sheet and statement of activities, rather than the currently required three classes of net assets
- Providing enhanced disclosures in areas including qualitative information that communicates how an NFP manages liquid resources, and quantitative disclosures on the availability of an NFP’s financial assets
- Reporting an analysis of expenses by both functional and natural classification
- Providing enhanced disclosures for underwater endowments
- Providing new disclosures for board designations on net assets.
- Reporting investment return net of external and direct internal investment expenses and no longer requiring disclosure of those netted expenses
- Using the placed-in-service approach to release restricted from donations to build or acquire fixed assets
- No longer requiring the presentation or disclosure of the indirect method (reconciliation) if using the direct method for the presentation of operating cash flows on the face of the statement of cash flows.
The proposed improvements and implementation ideas discussed on this webcast are of interest to not-for-profit organizations, and auditors and users of their financial statements. The amendments in the Update are effective for annual financial statements issued for fiscal years beginning after December 15, 2017, and for interim periods within fiscal years beginning after December 15, 2018.
Please click here to register.