Are you ready for change? FASB proposes accounting overhaul for nonprofits

Description

Abstract: In its recent Accounting Standards Update, 2015-230, FASB proposed new standards that, if finalized, will fundamentally alter the way nonprofits prepare their financial statements. This article summarizes some of FASB’s key proposals relating to the reporting of asset classes, cash flows, classification of expenses, liquidity and underwater endowment funds. A sidebar addresses skepticism expressed by nonprofits — and even FASB board members — about applying the proposed standards.