Changes for NFP financial statements

 

In 2016, the FASB issued ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, with the goal of improving not-for-profit entity (NFP) financial statements by providing more useful information to donors, grantors, creditors, and other financial statement users. The amendments significantly change how NFPs present net assets on the face of the financial statements and require incremental disclosures both for expenses by nature and function and for the liquidity and availability of resources.

 

These amendments mark the first major change to NFP financial statement presentation since the mid-1990s, as well as the completion of the first phase of the FASB’s project related to NFP financial reporting. This bulletin provides a high-level summary of the amendments, including related transition guidance.

 

The new guidance will be effective for annual financial statements for fiscal years beginning after Dec. 15, 2017 and for interim periods within fiscal years beginning after Dec. 15, 2018. Early adoption is permitted.

 

Download NDS 2016-11.

 

 

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