The New NPO Reporting Model (Currently Unavailable)

Author: Diane Edelstein

Master FASB Changes for Non-Profit Organizations
FASB Update No 2016-14 creates changes to the Presentation of Financial Statements of Not-for-Profit Entities (Topic 958). This on-demand course will discuss changes that will be effective for December 31, 2018 year ends.

Publication Date: November 2018

Designed For
CPAs in public practice, non-profit management, and auditors who work on NPOs.

Topics Covered

• Changes Effective for December 31, 2018
• ASU No. 2016”14
• Who, What, When ” Effective Dates and Transition
• Five Key Areas
• Options Without Early Adopting
• Reporting of Net Assets
• Reducing and Renaming Net Assets
• Example from the Statement of Financial Position Presentation
• How a Statement of Activities Will Appear
• Net Asset Disclosure Requirements
• Example Net Assets Footnote
• Board”Designated Net Assets
• Reporting Expiration of Restriction of Gifts Related to Long”Lived Assets
• Underwater Endowments
• Example Endowment Disclosure
• Liquidity Information
• New Disclosures Required
• Liquidity and Availability Footnote
• Statement of Cash Flows
• Operating Cash Flows
• The Operating Measure Information Provided by Some NFPs
• Reporting of Expenses
• Investment Return
• Additional Information Related to Allocated Costs
• Sample Disclosure Related to Allocated Costs
• Refining/Updating the Definition of Management and General Activities
• Management and General Expenses
• When to Allocate M&G Expenses
• Adjusting how NFPs Report Functional and Natural Expense Information
• Table in the Notes on Functional Expense
• Option to Present on Statement of Activities
• Options Without Early Adopting?

Learning Objectives

• Recognize the effective dates
• Identify the key areas of change
• Differentiate the two classes of net assets
• Identify how to prepare for the expanded disclosures needed
• Differentiate ASUs released in 2016 which specifically impacts nearly all not for profit entities
• Identify key areas with respect to the new ASU for not for profit entities
• Recognize which amendments can be implemented without adopting the ASU
• Identify a new disclosure requirement with respect to liquidity
• Describe costs excluded from the activities involved in generating investment return
• Recognize which cost could be allocated to M&G and investment expense

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
None

Advance Preparation
None