CPAs and Advisors with Your Growth in Mind

FASB Addresses General Expenditure Questions for Nonprofit Standard

With the 2018 effective date approaching for Accounting Standards Update (“ASU”) No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, a project manager with the Financial Accounting Standards Board’s (“FASB”) research team has advised nonprofit groups not to overthink the concept of “general expenditure.” Addressing concerns over the disclosure of funds for general expenditure at last week’s FASB Not-for-Profit Advisory Committee meeting, Rick Cole said donor restrictions on certain funds would not be exempt from general expenditures. He remarked that many of the illustrations should be taken as they are, not as absolute law. FASB Assistant Director. Read More.

Topics: , , , , , ,

FASB Announces Top Priorities for 2017

After issuing several key Accounting Standards Updates and announcing new board members last year, the Financial Accounting Standards Board (“FASB”) is preparing for a busy 2017. In a five-minute video, FASB Technical Director Sue Cosper outlines the FASB’s top priorities for this year. The FASB’s top priorities for 2017 include: Finalizing the hedging and long-duration insurance standards; Supporting the implementation of its revenue recognition, leases, and credit losses standards; Potential improvements to nonprofit financial reporting, particularly distinguishing between exchanges and contributions; and Redeliberating feedback on the Invitation to Comment and continuing to focus on its Conceptual Framework. Click here to watch the video.

Topics: , , , , , , , , , ,

Slight Correction Proposed to New Nonprofit Accounting Guidance

Following its October 19 meeting on approved technical corrections to the U.S. GAAP , the Financial Accounting Standards Board (“FASB”) is proposing a slight change to Accounting Standards Update (“ASU”) No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. In the proposed ASU, Technical Correction to Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities – Endowment Reporting, the FASB seeks to remove the phrase “that contain no purpose restrictions” from paragraph 958-205-50-1B(e)(3) of its August-issued accounting standard. The amendment would help clarify the requirements for nonprofits to disclose endowment funds, as well as restore the correct guidance that was changed by. Read More.

Topics: , , ,

FASB Issues Significant Nonprofit Accounting Update

Yesterday, the Financial Accounting Standards Board (“FASB”) issued its first major changes to nonprofit accounting in over 20 years. Published as Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities, the standard addresses how nonprofit organizations disclose their expenses and investments. The amendments are intended to benefit donors, lenders and other readers of financial statements by providing more insight about a nonprofit organization’s spending. ASU No. 2016-14 will require additional disclosures on a nonprofit’s access to liquidity and any endowment funds that are under water. Other expected. Read More.

Topics: , , ,

NACUBO Members Favor Nonprofit Reporting Requirement Update

As the Financial Accounting Standards Board (“FASB”) wraps up the first part of its nonprofit financial reporting project, members of the National Association of College and University Business Officers said the project’s second phase could help improve the way their operations are reported. During a meeting last month with the FASB, college finance officers voiced their intent to further efforts they began a decade ago to disclose more details regarding endowments, capital spending, operating budgets and fundraising. The FASB has no plans to begin the project’s second phase until an extensive review of its standard-setting agenda has been completed. The. Read More.

Topics: , , , , ,

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. Read More.

Topics: , , ,