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Part 3 FASB ASU 2016-14 Reporting Requirements White Paper

Part 3 FASB ASU 2016-14 Reporting Requirements White Paper

We’re pleased to make available the third and final segment of the three-part white paper series on FASB ASU 2016-14:

Click here to access FASB ASU 2016-14 Reporting Requirements for Not-For-Profit Organizations White Paper Series Part 3 of 3.

This 8-page document is a project plan to help you and your organization focus on task oriented items detailed in all three phases: understanding, preparing, and implementing.

Haven’t accessed Part 1 or Part 2? No problem! Use the links below.

Part 1 – Understanding. Preparing. Implementing. FASB ASU 2016-14 Reporting Requirements White Paper

Part 2 – Understanding. Preparing. Implementing. FASB ASU 2016-14 Reporting Requirements White Paper

Financial Technologies Management works exclusively with nonprofits – providing affordable accounting services, software, and technology.

With the Financial Accounting Standards Board (FASB) issuing a new accounting standards update specifically for nonprofits (ASU 2016-14) to improve the current net asset classification requirements and the information presented in financial statements and notes about a nonprofit entity’s liquidity, financial performance, and cash flows, this is considered a big change.

In fact, this is the first major set of changes to nonprofit financial statement presentation standards since 1993.

Part 3 in our 3-Part White Paper Series on Understanding. Preparing. Implementing. FASB ASU 2016-14 Reporting Requirements for Not-For-Profit Organizations is an active project plan to help you and your organization focus on task-oriented items detailed in all 3 phases; understanding, preparing and implementing.

Feel free to edit and alter this to make it work for your unique nonprofit environment. Not every task will apply to your nonprofit, and there will probably be tasks you will need to add. Part 3 is meant to help guide you and your team as you embark on satisfying the new FASB ASU 2016-14 reporting requirements.

If you don’t want to go it alone – the team at FTM is here to help. We’ve been serving nonprofits exclusively since 1999. We work with nonprofit to select and implement leading nonprofit accounting solutions.

We also provide accounting services, including outsourced accounting, for organizations that understand that professional attention to the organization’s financial accounting is a prerequisite for proper stewardship.

FASB White Paper Part 2 Reporting Requirements for Not-for-Profits

FASB White Paper Part 2 Reporting Requirements for Not-for-Profits

As discussed in Part 1, by simplifying the financial statements, and by enhancing disclosures (footnotes), the FASB ASU 2016-14 changes will enable not-for-profit organizations to provide a more accurate and complete financial picture. The distinction between permanent restrictions and temporary restrictions had blurred over time by changes and as a result, had become less useful on the face of financial statements.

By reducing the number of classes of net assets that must be reported on the face of financial statements, especially the statement of activities, it will help reduce complexity, increase understandability, and enable greater use of multi-period comparative financial statements that can provide donors, grantors, creditors, and other stakeholders with information useful in identifying and assessing key trends.

Part 2 of Understanding. Preparing. Implementing. FASB ASU 2016-14 Reporting Requirements for Not-For-Profit Organizations will:

1) Analyze the changes in each financial statement. Helpful Hint: We recommend printing your audit statements to make it easier to compare and take notes.

2) Review typical chart of account changes needed to facilitate the new reporting.

3) Assess the accounting that may be needed in day-to-day and/or year-to-year processes.

4) Review the footnote changes that will be required. While many auditors prepare these for their clients, it’s smart to think them through and own the process.

Download the white paper