Deloitte
Accounting Research Tool
...
2016

FASB Overhauls Guidance on Presentation of Financial Statements for Not-for-Profit Entities (September 12, 2016)

FASB Overhauls Guidance on Presentation of Financial Statements for Not-for-Profit Entities

Heads Up | Volume 23, Issue 24
September 12, 2016
by Joan Schweizer, Mario Enxuto, and Ermir Berberi, Deloitte & Touche LLP
Image cannot be displayed
On August 18, 2016, the FASB issued ASU 2016-14,1 which significantly changes the presentation requirements for financial statements of not-for-profit entities (NFPs). The amendments are intended to improve the guidance on net asset classification as well as the information presented in the financial statements and financial statement notes regarding liquidity, financial performance, and cash flows for NFPs. Specifically, the ASU addresses (1) the complexity and understandability of net asset classifications, (2) the lack of consistency in the type of information provided about expenses, and (3) inconsistencies in the reporting of (a) operating information in the statement of activities and (b) operating cash flows in the statement of cash flows.

Footnotes