DescriptionWith Mike Batts and Mike Lee
The Financial Accounting Standards Board (FASB) recently released a new accounting standards update that represents the most significant change to nonprofit financial statements in more than 20 years.
According to the FASB, the new standard aims to improve presentation of financial information, ultimately making nonprofit financial reporting statements more informative, transparent, and useful to readers.
Key provisions of the new standard include the following:
- Revises net asset classifications to just two...net assets with and without donor restrictions.
- Enhances disclosures for self-imposed limits on the use of resources without donor-imposed restrictions and the composition of net assets with donor restrictions.
- Requires the presentation of expenses by nature as well as function, including an analysis of expenses showing the relationship between functional and natural classification for all expenses.
- Requires qualitative disclosures on how a not-for-profit manages its available liquid resources.
- Requires quantitative disclosures that communicate the availability of financial assets to meet cash needs for general expenditures within one year of the balance sheet date.
CEU InformationThis presentation qualifies for 0.1 CEU credit toward CCA certification and retention. Please refer to certification guidelines to ensure you are in proper compliance for credit. After completing the course submit a CEU request form to complete and make your request.
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