This course covers the not-for-profit financial statement – Statement of Financial Position – and is designed to introduce auditors to the Financial Accounting Standards Board (FASB) requirements of Accounting Standards Codification (ASC) Topic 958 — Not-for-Profit Entities regarding proper preparation of the statements.  


This course discusses assets, liabilities, and net assets accounts as well as disclosures that are specific to typical not-for-profits.  The course also discusses how Accounting Standards Update (ASU) 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, required structural changes to the average not-for-profit statement of financial position. The lessons are then applied by showing how this works in a sample statement of position.  

Learning Objectives
  • Recognize proper account sequencing structure per Financial Accounting Standards Board (FASB) accounting standards for the statement of financial position.
  • Identify the accounts that are likely to appear on a not-for-profit statement of financial position and their measurement rules.
  • Identify the key differences between net asset accounts prior to Accounting Standards Update (ASU) 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, and after.
Last updated/reviewed: August 21, 2023
12 Reviews (50 ratings)


Anonymous Author
A little too high level for non-beginners. These courses are mostly for continuing education of CPAs. As such, probably needs to be a little more relevant to that category of participant.

Anonymous Author
This course provides a good overview of how to categorize Government and Not-For-Profit Assets and Liabilities in the Statement of Financial Position.

Anonymous Author
The course is a good overview of Not-For-Profit SFP. The instructor does an excellent job of breaking down and explaining the SFP's sections.

Anonymous Author
I enjoyed this course. The instructor did a good job presenting the course materials. The course was short and on point.

Anonymous Author
I like the written material (both slides and glossary). Also found the presentation to be informative. No dislikes.

Anonymous Author
The instructor is very informative, however the glossary provided with the slides does not have many definitions,

Anonymous Author
This course was a bit confusing and the material presented did not seem to correlate with the exam questions.

Member's Profile
I would vote for None of the Above for the President of the United States...Just like in Brewster's Millions

Anonymous Author
This is a helpful and very basic overview. A good refresher to Statement of Financial Position topics...

Member's Profile
A good learning experience for individuals interest in professional development as a practicing auditor.

Anonymous Author
Good intro or review course on subject matter. Well presented

Anonymous Author
Meaningful and informative review for my CPA board exam.

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course, but completion of the other courses in this series is recommended.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Questions and Answers(3 Questions)
Member's Profile

Thanks for this presentation. It is very short, comprehensive and elaborative.

I need some clarifications with regards to "Net Assets" and disclosure requirements


If the Equity in the normal "for profit" organization comprises of "Opening balance Equity", "Retained Earning" and "Net Income".

How would I classify these items under "Net Assets" in the NFP ? are these items actually part of the component of Net Assets ?


What are the required disclosure requirement for NFP under AICPA Audit Guide and other applicable standard ?

Thank you

Member's Profile

Hi -

Answer to Question 1: On a nonprofit balance sheet the "equity" section or net assets section should only state whether the balance is donor restricted or not. But to calculate the balance you take the beginning balance from the beginning of the period and add in any excess revenue (net income) to obtain the balance you will see on the balance sheet.

Answer to Question 2: Please see ASU 2016-14 for further guidance on the latest regs regarding how to classify net assets. I also rely heavily on the AICPA NonProfit Accounting and Audit Guide for industry specific answers.

Hope that helps!

Member's Profile

Thanks for your response. I just need to clarify what constitute "beginning balance from the beginning of the period" ?

Is it "Opening equity + Retained Earning" ?

My confusion is where to report "opening equity". is it going to be added to the retained earning to arrive at "Net assets, beginning of the year (under statement of activities)" OR it will be reported separately in the " Statement of financial position"


Instructor for this course
Course Syllabus
  Introduction to Government and Not-For-Profit Training – Not-For-Profit Statement of Financial Position1:27
  NFPs Differences From Business Entities12:50
  Assets Section13:58
  Investment Disclosures5:31
  Net Assets2:19
  Government and Not-For-Profit Training – Not-For-Profit Statement of Financial Position Full Video48:03
  Slides: Government and Not-For-Profit Training – Not-For-Profit Statement of Financial PositionPDF
  Government and Not-For-Profit Training – Not-For-Profit Statement of Financial Position Glossary/IndexPDF