Implementing ASU 2016-14 Not-For-Profit Financial Statement New Reporting Standards

Major Changes in Net Asset Classification, Liquidity and Expense Function Reporting, and User Clarity

Recording of a 110-minute CPE webinar with Q&A

Conducted on Tuesday, November 28, 2017

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will provide advisers to nonprofit organizations with a practical guide to the new FASB reporting requirements for nonprofit organizations. The panel will discuss the specific changes to various financial reporting requirements required by the new standard, including the reduction in the number of net asset classes, change in presentation of cash flows, and enhanced reporting on liquidity. The event will offer useful guidance in designing a plan to transition to the new reporting protocols and in weighing reporting alternatives.


In August, 2016 the Financial Accounting Standards Board issued ASU 2016-14 Presentation of Financial Statements of Not-For-Profit Entities, Topic 958 (“ASU 2016-14”). ASU 2016-14 is effective for annual financial statements issued for fiscal years beginning after December 15, 2017, and for interim periods within fiscal years beginning after December 15, 2018. Early application is permitted. ASU 2016-14 represents the most significant changes to not-for-profit (NFP) financial reporting in over 20 years. The requirements issued in ASU 2016-14 are designed to make it easier for financial statement users and stakeholders to understand NFP financial statements. ASU 2016-14 will impact financial reporting for all NFP entities, which will require financial officers at NFP entities to plan and prepare in order to comply with the new reporting requirements.

The new standard requires NFP entities to significantly increase disclosures in reporting cash flows and liquidity risks. In addition, an analysis of expenses by both function and natural classification will be required for all NFP entities either on a separate statement, on the face of the statement of activities, or in the notes to the financial statements. The new standard also requires NFP entities to reduce the number of net asset classes from three to two. Financial officers at NFP entities must carefully examine asset structures, particularly assets with significant donor restrictions and endowments that are “underwater.”

These new standards are part of FASB’s ongoing plan to improve the usefulness NFP financial reporting and transparency to the users of the financial statements.

Listen as our experienced panel provides thorough and practical guidance to the new NFP reporting standards for net assets, expenses and liquidity.



  1. Contents of ASU 2016-14
  2. Change in net asset classifications
  3. Reporting underwater endowments or endowments with donor restrictions
  4. Liquidity reporting requirements and options
    1. Cash flow presentation
    2. Functional expense presentation
  5. Additional FASB changes to follow


The panel will discuss these and other important topics:

  • What are the considerations in determining how best to disclose the analysis of expenses by both function and nature of classification?
  • What factors will NFP advisers and executives have to consider while reducing the number of net asset classifications from three categories to two, while also complying with the liquidity disclosures?
  • What influence will donor restrictions and underwater endowments have on net asset classification?
  • Should the NFP convert from indirect to direct method of reporting when presenting net amount of operating cash flows given that the new guidance no longer requires reconciliation to the indirect method?


Dyson, Robert
Robert Dyson, CPA

Quality Control Director

Mr. Dyson has over 26 years of experience in ensuring compliance with professional standards by national and...  |  Read More

Victor, George
George I. Victor, CPA, CGMA

Giambalvo Stalzer & Company

Mr. Victor has extensive experience in providing accounting and advisory services to both privately held and SEC...  |  Read More

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