April 17, 2018
Eide Bailly has held numerous client trainings, meetings, and conversations with nonprofit entities to assist them with the implementation of FASB ASU 2016-14, Not-for-Profit Entities (Topic 958) – Presentation of Financial Statements of Not-for-Profit Entities. During the course of those meetings we have identified the issues, observations, and concerns most prevalent as voiced by CEOs, CFOs and Controllers:
It is important to note that not all facets of implementation plans are negative! Some nonprofits are using their implementation project to delve into legacy board-designated and donor-restricted net assets with a goal of carefully evaluating the restrictions of long-time funds to determine once and for all the accuracy of the restrictions that have been carried forward over the years. Some nonprofits are also considering whether the direct method of presenting their statement of cash flows would better inform funders and other users of the factors that truly drive their operating cash flows.
Eide Bailly can assist you with all facets of your organization’s implementation of this new standard. Please call a member of your Eide Bailly team today or visit our website to find someone to who can assist.