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FASB staff issues FAQ on proposal related to financial statements of not-for-profit entities

  • FASB (US Financial Accounting Standards Board) Image

Jul 24, 2015

The FASB staff has issued an FAQ on issues that the Board may consider during future deliberations of its proposed Accounting Standards Update “Presentation of Financial Statements of Not-for-Profit Entities.”

The FAQ answers the following questions:

  • “Is the FASB proposing that the revised terminology be used verbatim or is there sufficient latitude to use other meaningful labels?”
  • “How would an NFP classify gifts received under ‘donor-advised’ gift arrangements if the NFP has a standing policy to set aside all such gifts for investment until such time as it receives the donor’s advice as to their use?”
  • “Must all depreciation expense be classified as an operating expense?”
  • “Are there cost-effective techniques that an NFP can use in developing operating cash inflows and outflows for presentation, as proposed, under the direct method?”
  • “Is FASB still seeking participants for one of its public roundtables and how do I register?”

For more information, see the FAQ 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.