The Financial Accounting Standards Board is getting ready to unveil a set of proposals that could have a major impact on the way nonprofit organizations present their financial statements.
The board voted earlier this month to issue a proposed accounting standards update that would include improvements to the current net asset classification scheme and the required information about an organization’s liquidity, financial performance and cash flows (see FASB Proposes Accounting Standards Change for Nonprofits). FASB plans to issue the proposals in mid-April and ask for public comments.
FASB’s announcement provided few details and instead directed interested parties to the project page on the FASB Web site. Lee Klumpp, National Assurance Technical Director in BDO’s Nonprofit & Education practice, has been closely involved with the project as both a FASB fellow and at BDO, and he filled in Accounting Today on what to expect. He was the project manager for the first year and a half of the project at FASB...
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Source: Michael Cohn (www.accountingtoday.com)
