The new Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-14 is effective for fiscal years starting after December 15, 2017. This new standard addresses a nonprofits’ ability to tell their story through transparent financial reporting, improving upon and changing existing rules which had not been updated in 23 years.
This new ASU affects all non-profit organizations. You should be familiar with the impact on your organization. The changes impact the following areas of financial reporting:
1. Net Asset Classification
2. Information about Liquidity and Availability of Resources
3. Information about Expenses and Investment Return
4. Presentation of Operating Cash Flows
Support Kansas City is here to help you navigate these changes. We provided links below to resources that provide detail about the changes and their implementation. Support Kansas City is also addressing these changes in the March and April Support Kansas City Coffee Cup Conversations. The information about those trainings are listed below. We hope to see you at the presentations!
FASB website and white papers
Nonprofit Quarterly article