Accounting Standards Update (ASU) 2016-14: Is Your Nonprofit Ready?
Tuesday, October 9, 2018
by Your Part-Time Controller
Accounting Standards Update (ASU) 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, represents the first major change to not-for-profit (NFP) financial reporting in over 25 years! Are you ready?
By issuing this guidance, the Financial Accounting Standards Board (FASB) hopes to provide financial statement users with statements that are clearer and more transparent, and provide increased consistency of information.
At Your Part-Time Controller, LLC (YPTC), we feel the guidance contains two major groups of changes: 1) changes in financial statement presentation, and 2) enhanced note disclosures (additions to the footnotes that accompany the financial statements). There are a few minor changes, which we’ll review at the end.
To assist with the implementation of these changes, YPTC has also provided an Implementation Checklist.
For the checklist and extensive information on the new rules, click here to find out if you are prepared!