Not For Profit Financial Statement

1234 Words5 Pages
Abstract Not-For-Profit financial statement preparers might experience dramatic changes in practice as a result of new standards which proposed on April 22, 2015. Before that time, the FASB has endeavored to eliminate differences in reporting between Not-For-Profits and business enterprises. In this new model that uses a different approach to presenting financial information, a key target is to make a consistency to all NFPs. For examples, NFPs within the proposal’s range would be required to demonstrate standardized operating measures. In addition, for the statement of cash flows, it asked to use the direct method to show it. Other proposed changes are designed to make it simplified and clarify the reporting of classes of net assets in the statement of financial position. For instance, expand disclosures related to the expense and liquidity. In the following sections, I will list the updated changes and compare the differences between the old version and the new one. By contrasting the old and the new, we could get to know how should we put the new regulation into use. Key words Accounting Standards Update(ASU) Operating Activities New Dimensions Statement of Cash Flow Introduction The accounting and reporting guidance for Not-for-profit entities has remained almost the same for more than 20 years. At that time before April 2015, stakeholders and outside users have expressed worries and concerns regarding the complexities and
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