The F FASB C Changes ( (ASU 2 2016-14 14): How I Is Y Your No - - PowerPoint PPT Presentation
The F FASB C Changes ( (ASU 2 2016-14 14): How I Is Y Your No Nonprofit D Doing? 1 Gina McDonald, Lead Consultant, FMA Join the conversation using our April 29, 2020 hashtag, #FASBUpdate Todays Pr Presenter Gina M McDonald
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Gina McDonald, Lead Consultant, FMA
April 29, 2020
Join the conversation using our hashtag, #FASBUpdate
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Gina M McDonald Lead Consultant, FMA
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Issued in August 2016 First major revision since 1993 Effective Date: Calendar 2018 or Fiscal Year 2019
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ASU 2016-14 Liquidity & Availability Expenses Investment Return Statement of Cash Flows Net Asset Classification Expenses Net Asset Classification Liquidity & Availability
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Unrestricted Net Assets Net Assets Without Donor Restrictions Temporarily Restricted Net Assets Permanently Restricted Net Assets Net Assets With Donor Restrictions
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GAAP still allows flexibility i in p
disaggregate net assets further and show the following:
Without Donor Restrictions
With Donor Restrictions
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Current F FASB R Rules
nonprofits are required to disclose functional expenses, either:
– On the face of the Statement of Activities, – As a schedule in the notes to the financial statements, or – In a separate Statement of Functional Expenses
f the m methods u used t to a allocate e expenses to the functional categories are also required
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Are you allocating costs among functions throughout the year, or only at year end? Who is creating your Statement of Functional Expenses? Your auditor? Do board members and key staff understand your
Are you reporting “true cost”?
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Disclose how a nonprofit manages its available liquid resources and
Availability of financial assets to meet cash needs for genera ral l expenditure res within
sheet date
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Note X X – Liquidity a and A Availability o
Financial A Assets Organization ABC’s working capital and cash flows have seasonal variations . . . To manage liquidity the Organization maintains a line of credit of $100,000 . . . The Organization has $487,757 in financial assets as of the balance sheet date . . . amounts set aside for operating and
approves that action.
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disclosure? Your auditor?
articulate your organization’s liquidity “story?”
leadership staff understand the story this disclosure is telling?
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Manage Cash Flow Identify Implications and Scenarios Understand Current Financial Position Net Assets Liquidity Revenue Expenses Operating Cash Flow Financing
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In collaboration with the Wallace Foundation, FMA has created a library of tools and resources to help organizations become “fiscally fit” Four T Topic A Areas: : Pl Planning | Mo Monit itorin ing | Op Operations | Go Governance ce
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Nonprofit Q Quarterly relies o
your g generous s
. If y you enjoyed t this w webinar, p , please c consider d donating t today! https:/ ://nonprofitquarterly.n .networkforgood.co .com/
Thanks for joining us! Share your thoughts using our hashtag, #FASBUpdate
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FMA offers complimentary orientation one-hour webinars that feature an overview of the website and drill down on several of its key resources Upcoming webinar date:
19, 2 , 2020 a at 2 2pm – 3pm ( (ET) To register, or see upcoming webinar dates: http://fmaonline.net/events For a 15-minute, on-demand webinar tour of the site: http://fmaonline.net/SNPonDemand
Look for a refresh in Fall 2017
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New Y York
vidence ● Washington D DC
management, accounting, software,
consulting services
through funder-supported management and technical assistance programs
@FMA4Nonprofits /FiscalManagementAssociates /company/fiscal-management- associates-llc
Gina M McDonald, C , CPA (646) 416-6047 gmcdonald@fmaonline.net
FMA exists to build a community of individuals with the confidence and skills to lead organizations that change the world