Understanding the Changes to Nonprofit Financial Reporting
By now, our readers are well aware that changes are afoot in the realm of nonprofit financial reporting. In fact, our recent poll
indicates that a majority (61 percent) of our readers have reviewed the ASU
on the presentation of financial statement of not-for-profit entities, yet only 27 percent have an implementation plan in place.
To aid nonprofits in this transitional period, BDO’s Nonprofit and Education practice developed a FASB Flash Report
. This comprehensive document details which aspects of the financial statement presentation have changed and how nonprofits can adjust their financial reporting accordingly. The main provisions of the ASU affect net asset classes, investment return, expenses, liquidity and availability of resources and presentation of operating cash flows.
Above all, the new ASU aims to simplify and improve the presentation of nonprofit financial statements. As such, BDO highlights opportunities for nonprofits to take their financial statements to the next level and make them a better resource for communicating accomplishments and outcomes to stakeholders.
You can view the full FASB Flash Report here