Spring 2014 issue of Horizons

Tentative Decisions & Remaining Deliberations At the time of Ron’s presentation, no decisions had been made with respect to improving/streamlining the notes. The board plans to coordinate and build on what is learned through the disclosure framework project and will seek opportunities to streamline disclosures, particularly as they relate to investment assets. The board is expected to continue its deliberations through the first half of 2014. An exposure draft is expected to be issued in mid-2014. We will keep you apprised of future developments on this issue. With respect to the research project related to NFP Other Financial Communications (Management Discussion and Analysis), Ron reported that on January 29, 2014, the FASB removed this project from the FASB’s research agenda. The FASB reorganized its agenda to focus on the issues most important to FASB stockholders.

Tentative Decisions All NFPs would be required to report expenses by both nature and function. Organizations would still have the flexibility to present expenses by either function or nature (or both) on the face of the statement of activities or within the notes. In addition, organizations would be required to provide this analysis of all expenses by function and by nature in one location. This might be in the statement of activities, a separate statement of expenses or a schedule in the notes. No specific format would be required. Although the analysis would include all expenses, NFPs would not be required to functionalize non-operating expenses.

Improvement to Notes Challenge Can the notes to the financial statements be improved and/or streamlined?

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Judy Murphy, CPA — St. Louis Partner-In-Charge Not-For-Profit Services Group 314.290.3496 judy.murphy@rubinbrown.com

Sharon Latimer, CPA — Kansas City Partner Not-For-Profit Services Group 913.499.4407 sharon.latimer@rubinbrown.com

Amy Altholz, CPA — St. Louis Partner & Vice Chair Not-For-Profit Services Group 314.290.3369 amy.altholz@rubinbrown.com

Evelyn Law, CPA — Denver Partner Not-For-Profit Services Group 303.952.1245 evelyn.law@rubinbrown.com

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