FASB Proposes Changes In Accounting Standards For Non-Profits

On April 22, the Financial Accounting Standards Board issued an Exposure Draft containing proposed refinements in current accounting standards for Non-Profit Entities. (Full text). The proposals address several issues:

• Deficiencies in the utility of information provided to donors, creditors, and others regarding an entity's liquidity stemming from misunderstandings of restrictions imposed by donors, laws, contracts, and governing boards on the entity's assets.
• Inconsistencies in the reporting intermediate measures of operations in the statement of activities.
• Inconsistencies in the type of information provided about the function and nature of operating expenses.
• Misunderstandings about and opportunities to enhance the utility of the statement of cash flows.

BNA Daily Report for Executives (subscription required) has more on the proposed changes.