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FASB Adds Nonprofit Consolidation Reporting and Nonemployee Share-Based Compensation Projects

As a result of its December 16th meeting, the Financial Accounting Standards Board (“FASB”) has added the following two projects to its standard-setting agenda:

  • Nonprofit consolidation reporting. The FASB will propose guidance clarifying when a nonprofit group serving as a general partner should report the holdings of a for-profit limited partnership on its balance sheets. Some nonprofits previously said that the guidance was not clear in Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis.
  • Nonemployee share-based compensation. Subtopic 505-50, Equity—Equity Based Payments to Non-Employees, addresses some of the accounting for nonemployee share-based payments, but the FASB research staff said it does not cover awards under Topic 718, Compensation—Stock Compensation. The FASB will determine whether to align certain parts of the accounting for nonemployee stock awards with the guidance for employee stock compensation.

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