Thursday, November 10, 2011

FASB trying to help Nonprofits better explain themselves

FASB is adding new projects to its agenda aimed at improving financial reporting by not-for-profit organizations.

The projects involve standard-setting and research. FASB believes the existing standards for financial statements of not-for-profit organizations can be updated and improved to provide better information. FASB members agree it is time to relook at the not-for-profit financial reporting model, which is nearly two decades old.”

The standard-setting project will focus on the financial statements and accompanying notes that are unique to not-for-profit organizations. It will re-examine the existing standards for financial statement presentation by not-for-profit organizations with a focus on improving the current net asset classification scheme and information provided in financial statements.

The research project will study the communication that nonprofit organizations currently use in describing thier financial position and operations. The will try to determine whether FASB, through its leadership or standard-setting efforts, can contribute to promoting such