TEST FASB Proposes a Clarification to Nonprofit ASU
This weekend, the Financial Accounting Standards Board (FASB) issued a proposed technical correction to ASU No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements for Not-for-Profit Entiti
es. As our readers will know, we’ve discussed this major change to nonprofit accounting at length on this blog. The proposed correction aims to clarify the minimum requirements for the reconciliation that a not-for-profit entity (NFP) is required to disclose if it has endowment funds.
The proposed amendments would not require transition guidance and would be incorporated in the final Accounting Standards Update. Additional details are available via the FASB website here
. The FASB invites comments on all matters in the proposed update, including this correction.
Need to brush up on the key requirements covered in the ASU? Review our previous blogs, here
. And to help you get on the way to implementation, check out this helpful infographic