Financial Management for Nonprofit Organizations, 3rd Edition

APPENDIX 6AREVISED FINANCIAL STATEMENT FORMAT – ACCOUNTING STANDARDS UPDATE 2016-14

We provide in this overview of the new financial statement presentation format standard a briefing on what is in the standard and why it matters to financial managers, executive directors, board members, staff and other stakeholders. Your organization will first implement the new standard in 2018 or 2019, depending on when your reporting year ends. We have drawn on several published resources for our survey, and we refer the reader to them for more on the technicalities and accounting aspects of the new standard. Chief among those resources are two from which we have drawn heavily: (1) another Wiley publication, How To Read Nonprofit Financial Statements, ASAE and Wiley, 2017, by Lang, Eisig, Klumpp, and Ricciardella; and (2) a presentation by Dale Larson, CFO of the Dallas Theological Seminary (an early adopter of the standard). Other resources we used and recommend for your review are the AICPA's Audit & Accounting Guide, Not-for-Profit Entities, published by AICPA and put out March 1 each year, the accounting standard update itself (FASB, source provided below), white papers and briefs put out by major accounting firms with a strong nonprofit focus (including BDO, CapinCrouse, Grant Thornton, BlumShapiro, and Aldrich), webinars done by BDO and CapinCrouse, and resources provided by trade and professional associations (including NACUBO, CACUBO, and ECFA). We first discuss the “why” behind ...