POLL RESULTS: Reactions to the Biggest Nonprofit Accounting Change in 20 Years
Last week, we asked the readers of the Nonprofit Standard to voice their opinions on the Financial Accounting Standards Board (FASB) ASU No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, widely considered the biggest change to nonprofit financial reporting in two decades. Over 30 of you responded to the questions we posed, letting us know your thoughts on this critical industry development.
As of press time, the results were as follows:
1. Many, but not all respondents have reviewed the details of the new standard.
2. Challenges surrounding the ASU are myriad, but communicating the changes to stakeholders and board members remains top of mind.
3. Many nonprofits are unprepared for implementation.
4. While early adoption is an option, most organizations aren’t pursuing it.
From looking at these results, we’re happy that many of you are already considering the impact of the ASU on your organizations. Continue to look to this blog as you work through your challenges with implementation. For our take on how organizations can prepare to implement the ASU, refer to guidance our own Lee Klumpp recently shared with Accounting Today. Also, be sure to check out the Nonprofit Financial Resource Center and follow us on Twitter at @BDONonprofit for the latest news and resources on nonprofit accounting.
For more information, contact Lee Klumpp, National Assurance, Technical Director, Nonprofit and Education, at firstname.lastname@example.org