ASU 2016-14, Topic 958 First major set of changes to Not for Profit (NFP) financial statement presentation standards since the issuance of FASB Statement No. 117, Financial Statements for Not-for-Profit Organizations, in 1993. This new standard is part of the FASB’s ongoing review of Generally Accepted Accounting Principles (GAAP) to ensure that they continue to meet the evolving needs of a dynamic financial reporting environment.

NET ASSETS

Balance Sheet Presentation

Example Footnote Disclosure – With Donor Restrictions Net assets with donor restrictions are restricted for the following purposes or periods: Subject to expenditure for specified purpose: Program A activities: Purchase of Equipment $ 3,060 Research 950 Program B activities: general 2,000 Buildings and equipment 2,240 8,250 Subject to the passing of time: For periods after 20X1 5,250 Subject to Entity’s spending policy and appropriation: Investment in perpetuity 102,157 Total Net Assets with Donor Restrictions $ 115,657

Example Footnote Disclosure – Board Designations Note XX – Net Assets Without Donor Restrictions The Board of Directors of XYZ Organization has several standing board policies that affect the presentation of board designations on net assets. Bequests without donor restrictions are $3,700, designated for long- term investment (quasi-endowment). The quasi-endowment balance totaled $3,500 at December 31, 20XX. Additionally, the Board of Directors has established an operating reserve with the objective of setting funds aside to be drawn upon in the event of financial distress or immediate liquidity need, The operating reserve totaled $1,300 at December 31, 20XX. Text disclosure in notes Net assets without donor restrictions: Undesignated $ 92,677 Quasi-endowment 3,700 Operating reserve 1,300 Total 97,677 Tabular disclosure or on face of the SOFP

Statement of Activities

LIQUIDITY AND RISK

Qualitative Liquidity Disclosure - Example The Board periodically designates a portion of any operating surplus to its liquidity reserve. As of December 31, 20XX, the liquidity reserve was $1,300. This is a governing board-designated fund with the objective of setting funds aside to be drawn upon in the event of financial distress or an immediate liquidity need resulting from events outside the typical life cycle of converting financial assets to cash or settling financial liabilities. In the event of an unanticipated liquidity need, NFP A also could draw upon $10,000 of available line of credit (as further discussed in Note XX) or the quasi-endowment fund.

EXPENSE REPORTING

OTHER CHANGES