FASB Discusses Phase 1 of Nonprofit Accounting Project
On Friday, the Financial Accounting Standards Board (“FASB”) met to discuss Phase 1 of redeliberations for its proposed Accounting Standards Update (ASU), Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities. In particular, the discussion focused on the following issues: Methods of Presenting Operating Cash Flows. The FASB agreed not to require the direct method of presenting operating cash flows, but will continue to allow nonprofit entities to use the direct method or indirect method. The FASB also decided to no longer require the indirect reconciliation if a nonprofit entity uses the. Read More.