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Implementing FASB ASU 2016-14 Not-For-Profit Financial Statement Reporting

Clarifying Net Asset, Liquidity and Functional Allocation Presentation

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

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Conducted on Thursday, April 18, 2019

Recorded event now available

or call 1-800-926-7926

This course will guide advisers to nonprofit organizations as they continue to work through the new FASB reporting requirements for nonprofit organizations. The panel will review 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 discuss the reporting protocols and alternatives in the FASB.


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 Dec. 15, 2017, and for interim periods within fiscal years beginning after Dec. 15, 2018.

ASU 2016-14 represents the most significant changes to not-for-profit (NFP) financial reporting in over 20 years. The requirements in ASU 2016-14 are designed to make it easier for financial statement users and stakeholders to understand NFP financial statements. ASU 2016-14 has impacted financial reporting for all NFP entities and requires financial officers at NFP entities to comply with these updated reporting requirements.

The standard requires NFP entities to increase disclosures in reporting cash flows and liquidity risks substantially. Also, an analysis of expenses by both function and natural classification is necessary 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 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 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 on the 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. Implementation challenges and key dates


The panel will discuss these and other relevant topics:

  • What are the considerations in determining how best to disclose the analysis of expenses by both function and nature of classification?
  • What factors do 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 do donor restrictions and underwater endowments have on net asset classification?
  • What are the differences between the indirect to direct method of reporting when presenting the net amount of operating cash flows given that this FASB ASU no longer requires reconciliation to the indirect method?


Euwema, Kenneth
Kenneth Euwema
Vice President, Controller
United Way Worldwide

Mr. Euwema joined United Way Worldwide (formerly United Way of America and United Way International) in November of...  |  Read More

Klumpp, Lee
Lee Klumpp


Mr. Klumpp previously worked in audit practices at KPMG and Ernst & Young and currently works with a number of...  |  Read More

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