AAFCPAs' Regulatory Update:
Understanding the New Nonprofit Financial Statement Presentation Standards; and the Impact of Revenue Recognition on Nonprofits
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Understanding the New Nonprofit Financial Statement Presentation Standards
The Impact of Revenue Recognition on Nonprofits
In August 2016, the FASB implemented an accounting standards update (ASU 2016-14) to refresh the previous reporting model. AAFCPAs discusses the main provisions of this ASU, which include net asset classification (collapsing three asset classifications into two), reporting expenses by natural function and category, the place-in-service approach for property and equipment purchases, and underwater endowment reporting. We review effective dates, and provide transition guidance and tips for a smooth implementation.
We also discuss the impact of the new Revenue Recognition standard, which will require significant management judgment, in addition to changing the way many Nonprofits recognize revenue in their financial statements.
This audio session was recorded live at AAFCPAs’ May 3rd, 2017 Annual Nonprofit Educational Seminar. Slides may be downloaded by clicking the links below:
- 2016 Guidance on Nonprofit Financial Statement Presentation Changes
- New Revenue Standard – ASU 2014-09 Revenue from Contracts with Customers (Topic 606) Considerations for Nonprofits
Watch this video clip (1 min 49 sec) for a summary; and then download the full audio of the session recorded May 3th, 2017 at AAFCPAs’ Annual Nonprofit Educational Seminar.
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