The Financial Accounting Standards Board (FASB) has issued a proposed Accounting Standards Update (ASU) intended to improve the information provided in not-for-profit financial statements and notes to financial statements. FASB encourages stakeholders to review and comment on the proposed ASU, Presentation of Financial Statements of Not-for Profit Entities, by August 20, 2015.
 
According to FASB member Lawrence Smith, "The proposed ASU contains recommended enhancements to the fundamental reporting model for not-for-profit entities that has existed for more than 20 years."
 
The ASU sets out FASB's proposed improvements to current net asset classification requirements and information presented in financial statement and notes to financial statements about a not-for-profit entity's liquidity, financial performance, and cash flows. According to FASB, the improvements are intended to:

• Better reflect financial performance in the statement of activities by showing—in two measures of operating performance—available amounts that have been generated by or directed at carrying out the mission of the organization in the current period, both before and after any governing board actions affecting that availability;
• Simplify the existing net asset classification scheme along with enhanced note disclosures.
• Enhance information in the notes to help financial statement users better assess a not-for-profits' liquidity and how it is being managed;
• Make information about expenses more comparable and useful by requiring that all operating expenses be reported by both function and nature, and that investment return be reported net of related expenses; and
• Make the statement of cash flows more understandable by (a) presenting cash flows provided by operating activities using the direct method of reporting, rather than the indirect (reconciliation) method, and (b) classifying cash flows in ways that are more consistent with classification in the statement of activities.

In an effort to provide education about the ASU and the changes it would require, the FASB has announced an educational webcast on its proposed Accounting Standards Update, Presentation of Financial Statements of Not-for-Profit Entities. The areas covered will include:

1. Background, objectives, and scope of the project
2. Key improvements being proposed, and the underlying thinking behind them
3. The feedback that the FASB is seeking and the various means of providing it
4. A question and answer period.

Individuals may register for the free seminar at this link.

Participants will earn 2.0 hours of continuing education credits in accounting. FASB cautions that final CPE earned will be determined based on the length of participation in the program, polling questions as described in CPE Eligibility, and completion of a course survey. Credit is provided only to participants in the live broadcast of this course. Please note that credit is not provided for group viewing. Each participant must be registered separately and meet both polling and duration requirements as per NASBA.
 
Refund/Cancellation Policy: There is no cost for this course and there is no cancellation penalty.  Participants will be notified by email as soon as possible if the course is cancelled for any reason.