For more than 20 years, not-for-profits have been operating under the same standards for financial reporting. The FASB brought these rules into the 21st century when they issued updated standards on August 18, 2016.
What’s in it for you? Fewer unnecessary regulations and more effective methods of communication to your stakeholders.
In a world of heightened scrutiny and demand for transparency from stakeholders, donors and regulators, this is welcome news for not-for-profits and those of us who serve them. The new rules will help you and your CPA tell your whole financial story through a more streamlined and modern reporting model.
According to the FASB, the new rules also make the following improvements:
Reduced costs and complexities in preparing financial statements
More relevant information about resources to simplify financial statements and enhance disclosures
Improved user assessments of liquidity, financial performance, availability of resources to meet cash needs for general expenditures, service efforts and execution of stewardship responsibilities
These amendments will not affect your annual financial statements until fiscal years beginning after December 15, 2017 and for interim periods within fiscal years beginning after December 15, 2018. To find out about the specific provision changes, you can visit the FASB’s website or contact me at firstname.lastname@example.org.