Or more precisely, does your chart of accounts provide, easily, the reporting that is going to now be required of all nonprofits?
The new ASU, 2016-14 Not-for-Profit Entities (Topic 958) Presentation of Financial Statements of Not-for-Profit Entities, will require financials statements of nonprofits to disclose expenses by both functional and natural classifications. In English, this means a Statement or Schedule of Functional Expenses will be required for all, when previously only voluntary health and welfare nonprofits were required to disclose such information. This disclosure will be necessary to report either in the financial statements themselves, or in the notes.
Most assume that …read more
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