The US Financial Accounting Standards Board’s
(FASB) Not-for-Profit Advisory Committee (NAC) has recommended
accounting rules for not-for-profit organisations are amended to
improve clarity in the reporting of their finances to donors and
other interested parties.
Key recommendations advanced by NAC
include:
- Revisiting current net asset classifications,
and how they may be relabelled or redefined, in conjunction with
improving how liquidity is portrayed in a not-for-profit’s
statement of financial position and related notes - Improving the statements of activities and
cash flows to communicate financial performance in greater
detail - Creating a framework for not-for-profit
directors and managers to provide commentary and analysis about the
organisation’s financial health and operations - Streamlining, where possible, existing
not-for-profit-specific disclosure requirements to improve their
relevance and clarity.
“While NAC members largely agree that
the basic financial reporting model for not-for-profit
organisations is sound, they also believe updates can be made to
improve the overall value of a not-for-profit’s financial reporting
package for users,” NAC chairman and FASB assistant director of
non-public entities Jeffrey Mechanick said.
The FASB is expected to discuss the changes at
a public board meeting later this year.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
