On August 18, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) on not-for-profit financial statements. This update, which is the most substantial update in over 20 years, is meant to improve the way non-profits classify their net assets and report information about their cash flow, liquidity, and financial performance.
The Update is effective for financial statements issued for fiscal years beginning after December 15, 2017, and for interim periods within fiscal years beginning after December 15, 2018.
For a detailed outline of the effects of the new guidance, read this article from the FASB website.
FASB will also be hosting a free webcast overview on Tuesday, September 13. Sign up for the webcast here.
We will be communicating with our clients regarding these new standards over the next few months to ensure they are prepared for implementation. If you have any questions in the meantime, please do not hesitate to give us a call at (626) 857-7300.