At its meeting last week, as part of Phase 1 of its project on the presentation of financial statements of not-for-profit entities (NFPs), the FASB continued to redeliberate its proposed ASU¹ and made tentative decisions about the transition provisions and effective date for its forthcoming standard.

Transition Provisions 

The Board tentatively decided that NFPs would be required to retrospectively adopt the amendments in the new guidance for all periods presented. However, NFPs would be allowed to prospectively adopt the provisions that require analysis of expenses and disclosures about liquidity and availability of resources.

The amendments would not apply to interim financial statements during the first year of application; however, if the interim financial information is reported with the annual financial statements in the first year of application, those interim periods would need to be restated.

Effective Date

The Board tentatively decided to make the amendments effective for annual and interim financial statements beginning after December 15, 2017, with early adoption permitted subject to the transition provisions above.  

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1 FASB Proposed Accounting Standards Update, Presentation of Financial Statements of Not-for-Profit Entities.

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