Synopsis

On March 4, the Financial Accounting Standards Board (the “FASB”) voted to release its proposal for the overhaul of how not-for-profit organizations, including charities, educational institutions, museums and others convey their financial information to donors and regulators. The FASB anticipates issuing the proposed accounting standards update by mid-April, with a public comment period expected to be available until the end of July 2015.

Issue

The proposed accounting standards updates are intended to enhance the usefulness of financial statements of not-for-profit organizations, with a focus on improving net asset classification requirements and information provided in financial statements, including details on liquidity, financial performance and cash flows.

What Does CohnReznick Think?

Not-for-profit organizations of all types may want to take early steps to evaluate the potential effect of the proposed guidance to be included in the exposure draft on its current financial reporting model. Officers, directors, trustees and stakeholders are encouraged to participate in the comment period.

Contact

For more information, please contact Kelly Frank, partner and CohnReznick’s Not-for-Profit and Education Industry Practice Leader, at 973-403-7999 or [email protected], or John Toscano, partner, at 959-200-7211 or [email protected].