Not-for-Profit Accounting: A High Priority for FASB
Public companies must adhere to multiple sets of reporting requirements. Governmental entities have their own accounting standards. And, since the beginning of the year, private companies have their own alternatives to U.S. generally accepted accounting principles (GAAP). The accounting standards for not-for-profit (NFP) entities, though, are not so straightforward under U.S. GAAP. In practice, the go-to source for aggregate authoritative and nonauthoritative guidance unique to NFP entities has been the American Institute of CPAs' Not-for-Profit Entities – Audit and Accounting Guide. The Financial Accounting Standards Board’s (FASB) current long-standing project, “Financial Statements of Not-for-Profit Entities,” will address many interrelated topics on NFP financial statement preparation. FASB expects to issue an exposure draft on the project during the second half of 2014.