On April 22, 2015, the Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update (ASU). The FASB’s goal is to improve the existing presentation standards for not-for-profit financial statements.
The exposure draft can be found on the FASB’s Web site, and a summary of the changes can be found in a FASB In Focus. This proposal provides the most significant changes to not-for-profit financial statements in the last 20 years. It’s expected to substantially impact all not-for-profit entities, creditors, donors, grantors, and others that use their financial statements.
An effective date hasn’t been determined. The board will determine whether the effective date should be the same for all not-for-profits, as well as whether early adoption would be permitted. The board will consider input from stakeholders before making its final decision.
The FASB has invited individuals and organizations to review and comment on all matters in this proposed ASU. The board has raised specific questions for respondents, including a request to suggest alternatives that might increase the expected benefits, minimize complexities, and reduce costs. We encourage preparers and users of not-for-profit financial statements evaluate the proposal and provide feedback to the FASB. All written comments are requested by August 20, 2015.
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We can help you determine the impact of the proposed guidance on your organization and guide you through its effect on your financial statements. Contact your Moss Adams professional for more information.