Major Changes for Nonprofit Organizations Just Around the Corner
According to the National Center for Charitable Statistics (NCCS), there are more than 1.5 million nonprofit organizations registered in the United States. There are many differences between nonprofit organizations, including differences related to their mission, size, and sources of resources. But many of them have one thing in common —they have only recently begun to consider the impact of a new FASB accounting standard related to preparing financial statements for nonprofit organizations. That standard, Accounting Standards Update (ASU) 2016-14, “Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities,” was issued in 2016, and its effective date is right around the corner.
Because ASU 2016-14 includes significant changes to the existing financial statement framework and related policies and procedures, we believe the ASU will require some time for preparers and auditors to implement it.
This special report discusses some of the most significant changes resulting from the ASU as well as some of the more important implementation issues.
For a more thorough discussion of these issues, read the full special report.