Changes are on the way for how not-for-profit organizations classify net assets and report their statement of activities, cash flows and liquidity.
The updates come as part of the Financial Accounting Standards Board (FASB)’s exposure draft of the proposed accounting standards update, Presentation of Financial Statements of Not-for-Profit Entities. Provisions outlined in the update reflect recommendations from the FASB’s Not-for-Profit Advisory Committee (NAC) as well as feedback from stakeholders. Stakeholders identified areas for change because of either diversity of practice under current U.S. generally accepted accounting principles (GAAP) or because of the complexity involved in the current reporting requirements.
Learn more about the changes in these areas in our latest MHM Messenger.