As we mentioned at our December 4, 2014 Dean Dorton Annual Accounting & Ethics Update, the Financial Accounting Standards Board (FASB) has voted to propose new not-for-profit reporting requirements (please see the link to the Journal of Accountancy article below).
From the AICPA:
A proposal FASB expects to issue for public comment in mid-April is aimed at enhancing the usefulness of the financial statements of not-for-profit organizations.
FASB voted 5-2 Wednesday to issue a proposed Accounting Standards Update, which would propose changes to:
- The current net asset classification scheme.
- The required information about an organization’s liquidity, financial performance, and cash flows.
The board will propose reducing the number of net asset classes presented from three to two. The new classification would convey net assets with donor-imposed restrictions and without donor-imposed restrictions.
Read more about the expected proposed Accounting Standard in the Journal of Accountancy.