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Update on FASB NFP Financial Statement Exposure Draft Project

Sikich

Oct 30 2015

2 min read

On October 28, 2015, the Board discussed the FASB staff’s summary of feedback received on the proposed Accounting Standards Update, Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities. The Board also discussed the recommended plan for redeliberations.

The Board decided to divide its redeliberations of the proposed Update into two workstreams. The first workstream would reconsider the following issues that are not dependent on other projects and are improvements the Board might finalize in the near term:

Net Asset Classification Scheme:
1. Disclosure of board-designated funds
2. Underwater endowments
3. Placed-in-service option for expiration of capital restrictions
Expenses:
1. Expenses by nature and an analysis of expenses by function and nature
2. Netting of external and direct internal investment expenses against investment return
3. Disclosure of netted investment expenses
4. Enhanced disclosures about cost allocations
Operating measures: improving disclosures by those not-for-profit entities that choose to present such a measure
Improving disclosures of information useful in assessing liquidity
Statement of cash flows: method of presenting and operating cash flows.

The second work stream would involve reconsideration of other proposed changes that are likely to require more time to resolve. Since they involve consideration of alternatives suggested by stakeholders, the Board did not previously consider or are related to similar issues being addressed in other projects.

Operating measures: all other elements of the proposal, including:Statement of cash flows: realignment of certain line items.
1. Whether to require intermediate measure(s)
2. Whether and how to define such measure(s) and what items should or should not be included in the measure(s)
3. Alternative disaggregation approaches suggested by stakeholders
Statement of cash flows: the realignment of certain line items.

As a leader in serving the NFP industry, Sikich is committed to keeping you informed and up-to-date on matters affecting you. If you have any questions or need more information on these or any other NFP issues, please contact one of our NFP executives.

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About the Author

Sikich

Sikich is a global company specializing in technology-enabled professional services. With more than 1,900 employees, Sikich draws on a diverse portfolio of technology solutions to deliver transformative digital strategies and is comprised of one of the largest CPA firms in the United States. From corporations and not-for-profits to state and local governments and federal agencies, Sikich clients utilize a broad spectrum of services* and products to help them improve performance and achieve long-term, strategic goals. *Securities offered through Sikich Corporate Finance LLC, member FINRA/SIPC. Investment advisory services offered through Sikich Financial, an SEC Registered Investment Advisor. 