In August of 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update: ASU 2016-14 Presentation of Financial Statements of Not-for-Profit Entities. This is effective for fiscal years beginning after December 15, 2017. Nonprofits should start working now with their internal and external accounting teams to prepare for the changes related to liquidity disclosures outlined in this new standard.
Per FASB, the goal of ASU 2016-14 with respect to liquidity is to improve deficiencies in the transparency and utility of information that is useful when assessing an entity’s liquidity, which can be caused by confusion about the term unrestricted …read more
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