Abstract:
In the United States, nonprofit entities have followed the FASB’s accounting guidance to present their financial statements, since 1993. However, in August 2016, FASB issued the Accounting Standards Update (ASU) 2016-14 Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. The FASB ASU 2016-14 changes the current preparation, presentation and disclosure of the not-for-profit (NFP) organizations’ financial statements. In June 2016, the Internal Revenue Service (IRS) announced that public access to the data behind the 990 reporting form is now available for public review on demand. This paper presents the current advances in the nonprofit sector related to the preparation and presentation of financial information.
