FASB Proposes Significant Changes to NFP Financial Reporting
On April 22, 2015, the Financial Accounting Standards Board (FASB) issued a proposal that could result in significant changes to not-for-profit (NFP) financial reporting. The proposed Accounting Standards Update (ASU), Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities, would change several requirements for financial statement presentation and notes of all NFP entities, including certain requirements for NFP health care organizations. FASB encourages NFPs and vested stakeholders to review and comment on the proposal by August 20, 2015.
The proposed standard would represent the most significant changes in NFP reporting rules since 1993, when FASB issued Statement No. 116 and Statement No. 117. FASB proposes significant changes to the fundamental reporting model intended to provide intuitive financial and liquidity information to donors, grantors, lenders and other users of NFP financial statements.