Association and nonprofit financial teams have a never-ending stream of work comprised of budgets, monthly and annual closes, annual audits, and constant interruptions from people wanting information. The ability to stay current on financial accounting changes is often relegated to updates from an organization’s public accounting firm of record. Often times because those seeking the information do not know where to find it.
An excellent source of information is the Financial Accounting Standards Board’s website.
The website is an excellent resource for accounting and finance professionals to stay up-to-date on the latest changes to accounting rules and standards. On the site, users can gain access under the Standards tab to the entire Accounting Standards Codification (ASC), access is free but you do have to register, with access users can view all the accounting standards updates issued such as ASU Update 2016-14, “Not-for-Profit Entities – Presentation of Financial Statements of Not-for-Profit Entities”. Section 958 in the codification deals with not-for-profit entities. Review of ASC Section 958 tells the user much of what they need to know relative to not-for-profit accounting.
For forward-looking information, visit the Projects tab to view FASB’s technical agenda. To view what FASB is currently working on, and the stage the project is in, visit the All Projects tab. Association and nonprofit finance and accounting personal may be particularly interested in projects related to the Revenue Recognition of Grants and Contracts by Not-for-Profit Entities, which is currently in initial deliberations. Also of interest may be a research project on Financial Statements of Not-for-Profit Entities (Phase 2). Users can follow the progress of these projects and review exposure drafts of proposed ASC changes as they are posted. If and when implemented, these updates will have a profound impact on not-for-profit accounting and reporting.
As always, please do not hesitate to contact Aronson LLC for accounting, tax, or other questions you might have at 301.231.6200.