Spring 2014 issue of Horizons

NOT-FOR-PROFIT

An Update on Not-For-Profit Financial Reporting by Judy Murphy, CPA

A t RubinBrown’s annual Not-For-Profit Update in St. Louis on January 30, 2014, we were pleased to feature Ron Bossio, Senior Project Manager at the Financial Accounting Standards Board (FASB), as our guest speaker. Ron currently serves as a member of the FASB nonpublic entities team, which was created to identify, analyze and address standard-setting issues that affect private companies and not- for-profit organizations. He and his team work closely with and support the activities of the FASB’s Private Company Council and its Not- For-Profit Advisory Committee (NAC). One of NAC’s current initiatives is the NFP Financial Reporting Initiative . The goal of this project, which is expected to result in an exposure draft in mid 2014, is to improve NFP financial reporting. As a result, Ron’s presentation, “FASB Nonprofit Update,” was on a very timely and relevant topic.

It is important to note the timing. The provided summary was gleamed from Ron’s presentation, which was held in January 2014. Recently issued standards (ASUs) and other projects/activities such as the lease project were also addressed, but the primary focus of Ron’s presentation was the NFP Financial Reporting Initiative .

Objectives of the initiative include:

∙ Revisiting net asset classifications/ terminology

∙ Improving liquidity portrayal

∙ More clearly communicating NFP performance

∙ Enhancing the relevance and clarity of NFP-specific disclosures

page 58 | horizons Spring 2014