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Not-for-profit financial reporting: Financial statements

The objective of this project is to reexamine existing standards for financial statement presentation by not-for-profit entities, focusing on improving (1) net asset classification requirements and (2) information provided in financial statements and notes about liquidity, financial performance, and cash flows.

At its October 28, 2015, meeting, the FASB decided to split the project into two phases. Phase 1 was completed with the issuance of ASU 2016-14, and focused on issues that were not dependent on other projects and were considered to be finalized in the near-term. Phase 2 will focus on issues that will take more time since other proposals need to be considered.


Meeting minutes

FASB discussions regarding this project are found in the following meeting minutes.

Phase 2

Deliberations on phase 2 of this project have not begun.

Phase 1

  • June 1, 2016 — The Board discussed sweep issues and cost-benefit analysis.
  • March 30, 2016 — The Board discussed transition provisions and effective date for its forthcoming standard.
  • March 23, 2016 — The Board continued to redeliberate the proposed ASU.
  • March 2, 2016 — The Board discussed disclosures about operating measure by those NFPs that choose to present such a measure and information useful in assessing liquidity and available of resources.
  • February 3, 2016 — The Board discussed feedback on its proposed ASU Presentation of Financial Statements of Not-for-Profit Entities.
  • December 11, 2015 — The Board discussed several issues related to Phase 1 of redeliberations for its proposed ASU.

Prior meetings

  • October 28, 2015 — The Board discussed feedback received on its proposed ASU.
  • April 7, 2015 — The Board met to discuss issues relating to the development of its proposed Accounting Standards Update (ASU).
  • March 4, 2015 — The Board expects a proposed ASU will be exposed for public comment by mid-April of 2015.
  • February 25, 2015 — The Board discussed the results of an external review of its proposed ASU as well as the proposed transition requirements, effective date, and comment period.
  • October 8, 2014 — The Board discussed (1) capital-like transactions and (2) board designations, appropriations, and similar transfers.
  • August 27, 2014 — The Board focused on not-for-profit disclosures including cost allocations.
  • July 23, 2014 — The Board discussed (1) the relationship between this project and its research project on financial performance reporting and (2) presentation alternatives for capital-like transactions and events.
  • June 18, 2014 — The Board discussed capital-like transactions, not-for-profit note disclosures, and the presentation and disclosure of investment expenses.
  • March 12, 2014 — The Board discussed alternative ways for not-for-profit entities to improve the reporting of their financial information about liquidity.
  • February 26, 2014 — The Board discussed the presentation of revenues, expenses, and other changes in net assets, possible requirement of net operating metric, and the treatment of investment expenses.
  • December 18, 2013 — The Board tentatively decided to improve the reporting of expenses for all not-for-profit entities.
  • December 11, 2013 (education session).
  • October 23, 2013 — The Board discussed potential ways to improve cash flow statements.
  • October 2, 2013 (education session).
  • September 4, 2013 — The Board discussed the presentation, classification, and disclosure of information about the net assets of not-for-profit entities.
  • May 29, 2013 (board meeting / education session) — The Board defined an intermediate operating measure, considered three alternatives for presenting an intermediate measure in a not-for-profit's statement of activities, and discussed certain implementation matters.
  • May 15, 2013 (education session).
  • March 28, 2013 (education session).
  • January 31, 2013 (education session).
  • June 6, 2012 — The Board discussed the staff’s plan for addressing issues relating to the development of an exposure draft to improve not-for-profit financial reporting: financial statements.
  • May 16, 2012 (education session).
  • November 9, 2011 — The Board added a standards-setting project and a research project to improve the existing standards for presentation of financial statements and related disclosures for not-for-profit entities.


Current status

Phase 1 of the project is complete. The FASB issued ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, on August 18, 2016.


Project milestones

Date Developments Comments
November 9, 2011 Added to the FASB's agenda
April 22, 2015 Proposed ASU, Presentation of Financial Statements of Not-for-Profit Entities Comment deadline August 20, 2015.
August 18, 2016 ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities Effective for annual reporting periods beginning after December 15, 2017, and for interim periods within fiscal years beginning after December 15, 2018.

Correction list for hyphenation

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