Here is a test on whether you nonprofit accountants out there ever read my articles of interest section of the newsletter. These articles discuss the most significant change in nonprofit accounting in 30 years.
Be honest now, how many of you took these pronouncements to heart and prepared for implementing the changes effective with fiscal years starting after December 15, 2017?
Yes, we’re talking about the FASB change on reporting of net assets and disclosures contained in ASU 2016-14.
So, if you read our articles, went to webinars and conferences or did research to learn and prepare, great. If not, it’s not too late. Rather than regurgitate past information, here are some references and resources to get on board.
- The BDO nonprofit resource center article, 5 Biggest Changes in Nonprofit Financial Statements, and infographic, which compresses all you need to know into one document
- My blog article on the major areas of the FASB change.
- View the recording below of January 2018’s MIP Virtual Forum which covers the mechanics of implementing the net asset restriction classification change.
Luckily, it’s still early in the year which allows enough time for implementation. But, don’t fall behind! Talk to your auditor about their expectations and guidance because they are not going to do your work for you. Also, discuss the changes with your Board audit and/or finance committee. Finally, start providing Board financials under the revised rules and help them understand the why of the new rule.
Contact us if we can be of further assistance.
Lee Bengston, CPA