As of 2017, the Account Standards Update no. 2016-14 concerning non-profit entities was released to initiate five changes to financial statements presented by these organizations. These changes state: Net asset classifications decrease from three to two – net assets with donor restrictions versus without donor restrictions. Reporting of enhanced disclosures for underwater amounts of donor… Read More

As mentioned in prior statement articles, reporting in terms of fair value for statements is a regulation that non-profits must abide by. Statement No. 157 characterizes what fair value is and how it is measured and disclosed in accordance with generally accepted accounting principles (GAAP). Other accounting statements that also require reporting under fair value… Read More

Statement No. 124 pertaining to Non-Profit Organizations initiated standards for investments held by the organization. This required a statement of activities be produced for the non-profit entity showing all gains and losses at a fair value for their investments in equity securities and investments in debt securities. The statement of activities must disclose the investments… Read More

Statement No. 117 pertaining to Non-Profit Organizations was released by the Financial Accounting Standards Board (FASB) to set guidelines for external financial statements. Their objective of Statement No.117 was to clarify the non-profit’s financial statements to be more transparent, relevant, and comparable to others. This enables outside users of financial statements to have their needs… Read More

The Financial Accounting Standards Board released Statement No. 116 pertaining to Topic 958 (Non-Profit Organizations) to set guidelines for contributions made and received through these entities. Understanding these guidelines is crucial for the organization’s accounting, because these are recognized as income and expenses for the entity. Therefore, contributions received, including unconditional promises to give, are… Read More

While most businesses aim to make a profit for their owners and interested parties, a non-profit organization is an entity whose goal is to earn money for public or social benefit. This is not to be confused with a not-for-profit who does not have a goal of raising any revenue whatsoever. Investor-owned businesses provide dividends,… Read More