FASB Not-for-Profit Advisory Committee Holds Semiannual Meeting

The FASB’s Not-for-Profit Advisory Committee (NAC) held its semiannual meeting on March 20, 2025. Topics addressed during the meeting included the following:

• Agenda consultation — Committee members gave their input on what the FASB’s future standard-setting priorities should be.
• Recent implementation of standards — The FASB staff gave an update on developments related to the implementation of certain standards since the previous NAC meeting in September 2024, including (1) the postimplementation review of ASC 842 (on leases) and (2) the FASB’s proposed Accounting Standards Update on measurement of credit losses for accounts receivable and contract assets for private entities and certain not-for-profit entities (NFPs).
• FASB projects — The FASB staff provided NAC members with an update on the Board’s projects on (1) refinements to the scope of the derivatives guidance, (2) accounting for and disclosure of software costs, (3) Codification improvements, and (4) the accounting for environmental credit programs.
• Research agenda — The FASB staff gave an update on the Board’s research project on the accounting for and disclosure of intangible assets.
• Emerging financial reporting issues for NFPs — Topics addressed included “better disaggregation of investment return and for improvements to the cash flow statement.” In addition, the committee discussed certain inconsistencies between the FASB’s guidance and GASB’s guidance (e.g., with respect to leases and subscription-based IT arrangements) and between the FASB’s guidance on government grants for NFPs and its proposed guidance for business entities.

For more information, see the meeting recap on the FASB’s Web site.