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

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

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

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Conducted on Wednesday, November 16, 2016

Recorded event now available

or call 1-800-926-7926

This course will provide advisers to nonprofit organizations with a practical guide to the new FASB reporting requirements. 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 weighing reporting alternatives.


New standards issued in Aug. 2016 represent the most significant changes to not-for-profit (NFP) financial reporting in almost a quarter century. The new requirements, issued in ASU No. 2016-14, are designed to make it easier for financial statement users and stakeholders to understand NFP financials.

The major differences between the new standards and existing practice involve increasing disclosures NFP entities are required to make in reporting cash flows and liquidity risks. The new rules allow nonprofit entities to choose whether to disclose information pertaining to the nature of expenses in notes to the financial statements or on the face of the statement.

The new standards also require nonprofits to reduce the number of net asset classes from three to two. Financial officers at NFPs must carefully examine their asset structures, particularly assets with significant donor restrictions and endowments that are “underwater.” These new standards are part of FASB’s ongoing plan to dramatically 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 whether to disclose the function and nature of expenses on the face of the financial statement or in the notes?
  • 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?


Ordeneaux, Renee
Renee Ordeneaux, CPA


Ms. Ordeneaux has more than 25 years of experience in public accounting and industry―including serving as the CFO...  |  Read More

Stacie Cornwell, CPA
Stacie Cornwell, CPA


Ms. Kowalczyk is a Senior Audit Manager with more than 12 years of experience providing audits, reviews and other...  |  Read More

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