The Biggest Change in Nonprofit Financial Reporting in More Than 20 Years Is Here

The Financial Accounting Standards Board (FASB) has just released a new accounting standards update that represents the most significant change to nonprofit financial statements in more than 20 years.

According to the FASB, the new standard aims to improve presentation of financial information, ultimately making nonprofit financial reporting statements more informative, transparent, and useful to readers.

Key provisions of the new standard include the following:

Description of how nonprofit financial reporting is different under FASB regulations related to net asset classes, investment return, expenses, liquidity and availability of resources, and statement of cash flows
The new standard is effective for annual financial statements issued for fiscal years beginning after December 15, 2017.  Early application is permitted.

More Coverage of the New Standard at our National Nonprofit Conference

Join us at our National Nonprofit Conference on September 16, 2016, as our national experts address the impact of this new standard on nonprofit financial reporting.  Mike Lee, National Director of Audit & Assurance Services for BMWL and Lee Klumpp, National Assurance Director for the Nonprofit and Education and State and Local Government Industries of BDO USA, Inc. will be providing cutting-edge analysis of the new standard and a practical discussion of its implications.  If you are involved in nonprofit financial reporting, you will not want to miss this important session.

Let Us Know if We Can Help

If you are a BMWL client and would like specific assistance in addressing the implications of this major new accounting standard for your organization, please reach out to us anytime.  It is our pleasure and privilege to serve you.  If your organization is not currently a BMWL client, we will be glad to discuss with you the many unique benefits of being a BMWL client.

 

This publication is for general informational and educational purposes only, and does not constitute legal, accounting, tax, financial, or other professional advice. It is not a substitute for professional advice. For permission to reprint, please contact us.  © 2024 Batts Morrison Wales & Lee, P.A.  All rights reserved.