Recent Changes And Amendments Within The Financial Accounting Standards Board

1227 WordsNov 5, 20165 Pages
Recent Changes and Amendments within the Financial Accounting Standards Board (FASB) Name of Student: Name of Course and Code: University Affiliation: Name of Professor: Date of Submission: RECENT CHANGES AND AMENDMENTS WITHIN THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) On August 18, 2016, Norwalk, CT, —The Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) meant to simplify and improve the way a not-for-profit organization category its net assets, as well as the information it presents in financial statements and notes about its liquidity, financial performance, and cash flows (FASB, 2016). Whereas as the current not-for-profit financial report model had progressed well for 20 years or more, stakeholders were more concerned about its complexity, lack of transparency, as well as the limited usefulness of some aspects of the model The new amendment improves and makes simple the financial statements facets while allowing for disclosures in the notes. This new amendment is infrastructural-effective. The rule will enable the not-for-profits to aptly communicate their conditions and financial performance to their stakeholders while at the same time cutting down on some specific costs and complexities in the preparation of financial statements (FASB ISSUES NEW GUIDANCE ON NOT-FOR-PROFIT FINANCIAL REPORTING, 2016). The Accounting Standards Update requires improved presentation and disclosures to enable the not-for-profits issue out
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