Need Help?
  • Application Remote Support
  • Infrastructure Remote Support
  • Sage HRMS Remote Support
  • Helpdesk
  • General Inquiry
1-800-719-3307
Net at Work Net at Work
  • Solutions & Services
    • ERP/Accounting

      ERP Services
      Acumatica
      NetSuite
      Sage X3
      Sage Intacct
      Sage 100 ERP
      Sage 300 ERP
      Sage 500 ERP

      CRM

      Strategic Advisory Services
      Digital Marketing Solutions
      CRM Training Camp
      Salesforce
      Microsoft Dynamics 365 CRM
      Sage CRM
      Infor CRM (formerly Saleslogix)

      Employer Solutions

      Sage HRMS
      Sage People
      Criterion
      Miviva

      Enterprise Content Management

      Imaging / Scanning
      Document Management
      Workflow Automation
      Solutions

      Nonprofit Solutions

      Abila by Community Brands
      NetSuite
      Sage
      Salesforce

      IT and Security Services

      Managed IT Services
      Fractional CIO Services
      Cloud Services
      Cloud at Work
      DR/Business Continuity Planning
      Compliance & Security
      Storage & Recovery
      Networking
      IT Security Services
      Communications

      Web Solutions

      Services Overview
      B2B Technology Suite
      Magento eCommerce
      WordPress CMS
      Systems Integration
      Website Managed Services
      Online Marketing & SEO
      ERP eCommerce Integration

      Additional Solutions

      Enterprise Business Intelligence
      Avalara Automated Tax Solutions
      Fortis Payments
      LeaseQuery Lease Accounting
      Sage Fixed Assets
      Vertex SMB Sales and Use Tax
  • Industries
    • Industries

      Healthcare
      Chemicals
      Food & Beverage
      Medical Devices
      Nonprofit
  • Learning Center
    • Online Resources

      Recorded Webinars
      Whitepapers
      Ebooks

      Upcoming Events

      Live Webinars
      Seminars
      Virtual Training Courses

      Training Courses

      View all available training course options
  • Company
    • Why Us

      Who We Are
      Management
      Our Partners
      Locations
      Careers

      News

      Press Releases
      Success Stories
      Net at Work Blog

      Contact Us

      1.800.719.3307
      Email Us

      Programs

      Alliance Partnership Program
      Women at Work
      Diversity and Inclusion
  • Blog
  • Contact Us
  • Contact Us

Home » Newsletters » NFP at Work – September 2016 » FASB Issues New Standards for Not-for-Profit Financial Reporting

NFP at Work – September 2016

Keeping You Up-To-Date With Information About Nonprofit Solutions

FASB Issues New Standards for Not-for-Profit Financial Reporting

By: Todd Polyniak, Guest Author, CPA and Partner at SAX

For the first time in more than 20 years, not-for-profit financial reporting will receive a much-needed makeover. On August 18, 2016, the Financial Accounting Standards Board (FASB) issued its new accounting standards for not-for-profit organizations. These rules are designed to help not-for-profits communicate their financial condition more effectively and eliminate unnecessary requirements from the previous standard.

In a world of heightened scrutiny and demand for transparency from stakeholders, donors and regulators, this is welcome news for not-for-profits, who can now tell their whole financial story through a more streamlined and modern reporting model.

According to the FASB, the new rules also make the following improvements:

  • Reduced costs and complexities in preparing financial statements
  • More relevant information about resources to simplify financial statements and enhance disclosures
  • Improved user assessments of liquidity, financial performance, availability of resources to meet cash needs for general expenditures, service efforts and execution of stewardship responsibilities

Generally speaking, the main provisions that amend financial statement requirements now mandate not-for-profit entities to:

  1. Present amounts for two classes of net assets at the end of the period (net assets with donor restrictions and net assets without donor restrictions) rather than the three current classes
  2. Present the amount of change in each of the two net asset categories rather than the current three classes
  3. Continue to present the net amount for operating cash flows using either the direct or the indirect method of reporting (but no longer requires the indirect method)
  4. Provide enhanced disclosures of the information summarized below;
    1. Amounts and purposes of governing board designations and appropriations
    2. Composition of net assets with donor restrictions
    3. How the NFP manages its liquid resources
    4. The availability of financial assets to meet cash needs
    5. Expenses by natural classification and functional classification.
    6. Methods used to allocate costs among programs and support functions
    7. Underwater endowment funds which include required disclosures of:
      • Policy and actions taken during the period concerning appropriation from underwater endowment funds
      • The aggregate fair value of such funds
      • The aggregate of the original gift amounts (or level required by donor or law) to be maintained
      • The aggregate amount of funds that are underwater (deficiencies) and are to be classified as part of net assets with donor restrictions
    8. Investment return net of internal and external investment expenses (no longer requires disclosure of those netted expenses)
    9. In the absence of specific donor restrictions, use the “placed in service” approach for reporting expirations of gift restrictions

Amendments to the standard will take effect for annual financial statements issued for fiscal years beginning after December 15, 2017 and for interim periods within fiscal years beginning after December 15, 2018. For more information on specific rule changes and the impact on your organization, contact Net at Work or your Account manager and they will connect you with the author of this guest post: Todd Polyniak, CPA at SAX.

« Return to Newsletter

In This Issue
  • A Note from the Team Leader
  • FASB Issues New Standards for Not-for-Profit Financial Reporting
  • Tips & Tricks – How to Reduce Your Office Paper
  • Upcoming Events

    Live Webinar: Abila MIP Year-End Tax Reporting
    Dec 20 or Jan 10
    2pm – 3pm ET
    Learn More / Register

    Michigan Abila MIP
    Nonprofit User Group

    Jan 26, 2017
    9:30am – 12pm ET
    RSVP Here

    Optional Advanced Financial Reporting Workshop (Following the User Group):
    Jan 26, 2017
    12:30pm – 4:00pm ET
    Click here for Pricing & Details

    NFP Support

    Helpdesk:
    P: 888.494.9479
    E: helpdesk@netatwork.com

    NFP Resource Archive

    View our library of nonprofit resources.

    Connect With Us

    Business Applications

    • Overview
    • ERP/Accounting
    • Cloud ERP
    • CRM
    • Employer Solutions
    • ECM
    • Nonprofit Solutions

    Learning Center

    • White Papers & Guides
    • Ebooks
    • Training Courses
    • Virtual Training Courses
    • Success Stories
    • Live Webinars
    • Recorded Webinars
    • Trials

    Infrastructure Solutions

    • Overview
    • Solutions
    • Managed IT Services
    • Fractional CIO & Advisory Services
    • Cloud Services
    • Cloud at Work
    • Compliance & Security
    • DR/Business Continuity

    Support

    • Application Remote Support
    • Infrastructure Remote Support
    • Sage HRMS Remote Support
    • General Inquiry
    • Helpdesk

    Web Development

    • Services Overview
    • Magento eCommerce
    • WordPress CMS
    • Systems Integration
    • Website Managed Services
    • ERP eCommerce Integration

    Company Information

    • Why Us
    • Alliance Partnership Program
    • Women at Work
    • Diversity and Inclusion
    • Partners
    • Careers
    • News
    • Blog
    • Privacy Policy
    • Contact Us

    Additional Solutions

    • Enterprise Business Intelligence
    • Avalara Automated Tax Solutions
    • Fortis Payments
    • LeaseQuery Lease Accounting
    • Sage Fixed Assets (Sage FAS)
    • Vertex SMB Sales and Use Tax

    Industries

    • Healthcare
    • Chemicals
    • Food & Beverage
    • Medical Devices
    • Nonprofit
    Net at Work
    Net at Work (HQ)
    575 8th Ave
    New York, NY 10018

    P: (800) 719-3307
    info@netatwork.com
    Locations Across North America »
    Visit our sister companies:
    Cloud at Work - Sage Application Hosting
    Pixafy - An eCommerce Agency
    Docutrend
    WordPress Image Lightbox Plugin