Current accounting standards supporting not-for-profit entities have existed since 1993. In response to stakeholder concerns about the complexity, transparency, and usefulness of these standards, FASB issued an August 2016 amendment to Topic 958 designed to simplify and improve the face of financial statements and the information disclosed in the notes to the financial statements.

 

Specifically, this update requires changes to net asset classes, investment returns, expenses, liquidity and availability of resources, and presentation of operating cash flows. This paper will examine these changes and their corresponding impact on Financial Statement Presentation.