On April 22, 2015, the Financial Accounting Standards Boards (FASB) issued a proposed Accounting Standards Update (ASU) that will substantially change the presentation of financial statements for not-for-profit (NFP) entities as we know it today. The overall objective of proposing this change is to “improve” the information presented in the financial statements and notes, and in particular, how it helps the reader better understand the organization’s net asset classifications, liquidity, financial performance and cash flows. The FASB and the American Institute of Certified Public Accountants (AICPA) have been working hard to educate the NFP community on this significant new standard, and have been requesting as much feedback as possible. Interested parties will have until August 20, 2015 to provide comments to the FASB on the proposed standard.
After the FASB receives comments from the public, they will host 2 roundtable meetings to obtain further feedback. The first roundtable will be held on September 21, 2015 in Norwalk, Connecticut and the second will be held on October 6, 2015 in Los Angeles, California. The meetings are open to the public, but space is limited and you should contact firstname.lastname@example.org soon if you would like to participate. After these meetings, the FASB will spend Fall of 2015 redeliberating, but they have not committed yet to a date for a final standard. Conventional wisdom suggests that we might see a final standard early to mid-2016, with an effective date probably a couple of years later.
Download the complete article by clicking here.