This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice (http://www2.deloitte.com/ca/en/legal/cookies.html) for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

FASB issues new standard on not-for-profit financial statements

  • FASB (US Financial Accounting Standards Board) (lt blue) Image

Aug 19, 2016

On August 19, 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-14, “Presentation of Financial Statements of Not-for-Profit Entities,” which simplifies how a not-for-profit organization (1) classifies net assets and (2) presents information in financial statements.

The purpose of the ASU is to improve “presentation and disclosures to help not-for-profits provide more relevant information about their resources (and the changes in those resources) to donors, grantors, creditors, and other users.” According to the FASB in Focus newsletter on the ASU, the new standard addresses:

  • “Complexity and understandability of net asset classifications.”
  • “Deficiencies in information about liquidity and availability of resources.”
  • “Lack of consistency in the type of information provided about expenses and investment return.”
  • “Misunderstandings about and opportunities to enhance the utility of the statement of cash flows.”

The ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within fiscal years beginning after December 15, 2018.

For more information, see the press release, FASB in Focus newsletter, ASU, cost-benefit analysis, and video discussion of the new standard on the FASB’s Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.