New Financial Reporting Rules for Nonprofit Organizations - What You Need to Know
On August 18, 2016, the Financial Accounting Standards Board (FASB) issued new rules for nonprofits: “Accounting Standards Update 2016-14 “Not-for-Profit Entities (Topic 958), Presentation of Financial Statements of Not-for-Profit Entities
.” This is the first major set of changes to nonprofit financial statement presentation standards since 1993. The new rules take effect in December 2017.
What are the goals of the new rules?
The FASB’s goals for the new rules are to provide better information to donors, grantmakers, creditors, and others who read nonprofit financial statements. The new rules will improve how a nonprofit organization can tell its story through its financial statements. FASB hopes the changes will improve the usefulness of nonprofit financial statements and/or reduce complexities and costs of financial reporting.
The full entry at the National Council of Nonprofit's webpage can be found here: https://www.councilofnonprofits.org/thought-leadership/fasb-s-new-financial-reporting-rules-nonprofit-organizations-what-you-need-know#sthash.wHk3M0sY.dpuf