FASB Discusses Forthcoming Nonprofit Standard
At its March 30th Board meeting, the Financial Accounting Standards Board (“FASB”) continued talks on its proposed Accounting Standards Update, Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities. Redeliberations focused on the transition method and the effective date for nonprofit entities to implement the guidance in the final Update. The FASB decided that nonprofits would have to apply the amendments retroactively for all years presented. If comparative financial statements are presented, however, certain information can be omitted for any years presented prior to the adoption year. The amendments would also be effective for fiscal years, and interim periods within those years, starting after December 15, 2017. Early adoption would be permitted. However, all items within the Update would have to be early adopted. Nonprofits would not be able to cherry pick which parts to early adopt.
More on the latest decisions regarding the nonprofit standard is available on the FASB Web site.