The FASB recently released the Proposed Accounting Standards Update (ASU) of Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954), Presentation of Financial Statements of Not-for-Profit Entities. HW&Co.’s Nonprofit Advisors Group has been intimately involved with the discussions the FASB Nonprofit Advisory Committee has had in drafting the proposed ASU and understand it will affect many of our clientele, therefore we have provided a comment letter to the FASB to respond to the proposed ASU.
We applaud the FASB’s efforts, and as we have stated in our letter, we believe changes are needed. Our concern is directed at our client’s abilities and resources to incorporate a change of this magnitude. A change requiring resources of the not-for-profit (NFP) that does not also provide a user of the financial statement a clear and transparent understanding of the financial statement, takes away from the resources that will help NFPs fulfill their mission, strengthen the community they serve, and the needs of society.
Click below to view our response to the FASB: