In August of last year, the Financial Accounting Standards Board (FASB) issued an accounting standards update which significantly impacts how non-profits communicate with their stakeholders.
The update, entitled Presentation of Financial Statements of Not-for-Profit Entities, is designed to help non-profits to more effectively “tell their story through their financial statements.”
In the April 2017 edition of The CPA Journal, MBAF’s Robert Dyson, along with colleague Travis Carey, provide an in-depth analysis of the update, and how it affects the presentation of non-profit financial statements, particularly in regards to liquidity and the availability of resources, financial performance, and cash flow. The article includes a hypothetical non-profit to illustrate the changes in financial reporting that are required by the update.
Since the reporting standards for non-profits have not changed significantly in over 20 years, this article is a must read for anyone responsible for preparing financial statements for a non-profit organization.