Not-for-Profit Reporting Model

Author: Diane Edelstein

There is very specific guidance on reporting for Not-for-Profits (NPOs). We will look at the required financial statements and the required footnotes disclosures unique to NPOs. We will look at the basic financial statements (statement of financial position, statement of activities and statement of cash flow) and the requirement to also report expenses functionally. We will discuss the flexibility of reporting an operating measure for NPOs and the challenges of reporting expenses.

Publication Date: October 2021

Designed For
This session is for personnel charged with drafting the financial statements and helpful for those NPO personnel that are reading the financial statements.

Topics Covered

• Required financial statements
• Required footnote disclosures unique to NPOs
• Basic financial statements (statement of financial position, statement of activities and statement of cash flow)
• The requirement to also report expenses functionally
• Flexibility of reporting an operating measure for NPOs
• Challenges of reporting expenses

Learning Objectives

• Recognize required financial statements and footnote disclosures unique to NPOs
• Identify the basic financial statements
• Identify the requirement to also report expenses functionally
• Recognize the three key differences between a for-profit and not-for-profit entity
• Identify which FASB ASB Topics provides specific guidance with respect to not-for-profit entities
• Identify the number of key areas updated in ASU 2016-14
• Recognize what information about liquidity NFPs are required to provide
• Recognize which type of transition methods is required based on the amendments from ASU 2020-07

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
None

Advance Preparation
None