NFP Financial Reporting: Preliminary Decisions Reached Through February 2016
The Financial Accounting Standards Board has met twice to redeliberate and make tentative decisions on its April 2015 proposed accounting standards update for not-for-profit (NFP) organizations. Plans to complete Phase One redeliberation items by June 30, 2016, are intact, with Phase Two items scheduled to follow. This paper discusses the results of redeliberations and tentative decisions made to date. Topics discussed include the statement of cash flows, net asset classification scheme and related issues, information useful in assessing liquidity, reporting of investment return and disclosure of investment expenses, an analysis of expenses by function and nature, providing enhanced disclosures about cost allocations and improved guidance on management and general expenses. All decisions are tentative and will become final only after a formal written ballot to issue a final standard.