Accounting Alert: FASB Announces Extreme Makeover for Not-for-Profit Financial Statement Presentation & Disclosures

On Thursday, August 18, the Financial Accounting Standards Board (FASB) issued final guidance intended to improve financial statement presentation by not-for-profit (NFP) organizations—a model that has existed for more than 20 years. The new guidance will affect substantially all NFPs, including charities, foundations, private colleges and universities, non-governmental health care providers, cultural institutions, religious organizations, and trade associations, among others. The amendments require NFPs to improve their presentation and disclosures to provide more relevant information about their resources (and the changes in those resources) to their donors, grantors, creditors and other users. There are qualitative and quantitative requirements in a number of areas, including net asset classes, investment return, expenses, liquidity and availability of resources, and presentation of operating cash flows. Read More.