The Financial Accounting Standards Board (FASB) has issued an exposure draft to solicit public comment on proposed changes to the presentation of not-for-profit entity (NFP) financial statements.
The objectives of the proposed changes are to focus on improving net asset classification requirements and the information provided in the financial statements and notes about liquidity, financial performance and cash flows. The proposed changes are intended to provide more useful information about NFPs’ resources and changes in those resources to donors, creditors and other users of NFP financial statements.
The exposure draft also includes 22 questions that FASB would like addressed through public comment. FASB invites individuals and organizations to comment on any of the matters presented, particularly the posed questions. Due to the extent of the proposed changes, FASB is providing a lengthy comment period, with comments due Aug. 20, 2015. FASB plans to determine the effective date of the final Accounting Standards Update after consideration of stakeholders’ feedback.
KSM plans to study the exposure draft and summarize key changes through a series of subsequent communications. Also, please let us know if you would like to discuss any matters in the exposure draft. Contact your KSM advisor or Amanda Horvath with any questions.