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Exploring FASB’s Not-for-Profit Financial Reporting Standard: ASU 2016-14

Firms, not-for-profit entities (NFPs), and their boards of directors will soon see some changes to NFP financial statements as a result of recent FASB Accounting Standards Update (ASU) 2016-14. This ASU was presented to simplify the net asset classification requirements and improve the information presented in financial statements and notes about an NFP’s liquidity, financial performance and cash flows. The new guidance is effective for periods beginning after December 15, 2017. The AICPA brought together the expertise of the Private Companies Practice Section (PCPS), Center for Plain English Accounting (CPEA), and Not-For-Profit Section to assemble the following toolkit.