FASB: Proposed changes to not-for-profit financial statements

FASB: Not-for-profit financial statements

The FASB has invited constituents to comment on a proposed accounting standards update (ASU) that would change the presentation of financial statements for not-for-profit entities, including health care entities.

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The proposed ASU would:

  • Reduce the number of net asset classes presented from three to two—with donor-imposed restrictions and without donor-imposed restrictions
  • Define two intermediate measures of operations and require their presentation
  • Require presentation of operating cash flows using the direct method and recategorize items reported in the statement of cash flows to align with the proposed definition of operations in the statement of activities

Comments on the proposed ASU are due August 20, 2015.


Read an April 2015 report [PDF 645 KB] prepared by KPMG LLP: Defining Issues: FASB Proposes Changes to Not-for-Profit Financial Statements

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