Industry Insights

BKD Sends Comment Letter to FASB About Proposal on NFP Financial Statement Presentation

September 2015

In our comment letter, we supported the Financial Accounting Standards Board’s (FASB) goal of improving financial statement presentation by not-for-profit (NFP) entities, in an effort to reduce diversity in practice and increase the financial statements’ utility. We supported certain aspects of the proposed amendments—most notably changes to the classification of net assets from three to two.

However, we recommended FASB delay certain aspects of the proposal so changes can be considered concurrently with agenda items applicable to for-profit entities; this also would help maintain consistency with the current reporting model used by business-oriented health care entities. We believe delaying certain proposed changes will enhance comparability and facilitate improved understandability of NFP financial statements for investors, lenders, creditors, donors and other financial statement users.


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