FASB and NACUBO Reach Agreement on Planned Investment Expense Reporting Changes
Last Tuesday, the Financial Accounting Standards Board (“FASB”) and representatives from the National Association of College and University Business Officers reached a general agreement regarding the outlines of the updated reporting requirements for investment expenses. The agreement is a key provision in the FASB’s planned guidance for nonprofits, but Board staffers could take several weeks to prepare the standard. Finance officers will not have a chance to see the final changes until the proposal is made public. Finance officers are concerned that the FASB will draft a narrow definition for direct expenses deducted from investment returns and limit how their. Read More.
FASB Nonprofit Project Focuses on Investment Expenses
Working to complete the draft guidance in Proposed Accounting Standards Update (ASU) No. 2015-230, Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities, the Financial Accounting Standards Board (“FASB”) met recently to discuss how nonprofits report their investment returns and expenses. During the February 3rd meeting, the FASB unanimously agreed that nonprofit organizations will have to report investment returns net of their external and direct internal investment expenses. The discussion focused on the terms “direct internal” as opposed to related expenses. The provision will provide clarity regarding the fees and expenses associated. Read More.