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December 31, 2018 will see significant changes to not-for-profit (NFP) financial reporting as ASU 2016-14, Presentation of Financial Statements of Not-for-Profit entities becomes effective.  It is essential to understand the various aspects of the Accounting Standards Update (ASU).  

The previous reporting requirements for Not-for-Profit entities fell under the Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards (FAS) No. 116 and 117, issued in 1993.  In November 2011, the FASB announced two projects intended to improve the financial reporting of not-for-profit entities.   This was the first change to reporting in over 20 years.

The FASB views ASU 2016-14 as Phase 1—the beginning of guidance to result from its multiyear review of the not-for-profit financial reporting model. There are critical enhancements to the reporting process which all not-for-profit entities should be aware of including:

  • Changes in net asset classification
  • Changes in investment returns
  • Changes in reporting of expenditures
  • Changes in reporting and disclosing liquidity and cash flow
  • Changes to the physical financial statements of the not-for-profit entity

This course reviews the new requirements and provides examples on how they will impact not-for-profit financials. This particular course focuses on the changes relevant to the statement of activities, statement of cash flows, disclosures for expenses, and investment expenses.  

Learning Objectives

  • Explore the composition and purpose of the statement of activities for not-for-profits.
  • Explore presentation alternatives through the use of examples.
  • Explore the composition and purpose of the statement of cash flow for not-for-profits.
  • Explore requirements related to liquidity information.
  • Identify concepts surrounding how reporting of expense information will change.
Last updated/reviewed: November 28, 2019

Included In Certifications

This course is included in the following Certification Programs:

14 CoursesNot-For-Profit and Small Business Entities Certification

  1. Introduction to Accounting For Not-for-Profit Entities
  2. Accounting for Not-for-Profit Entities
  3. Identifying and Implementing the Proper Balance of Internal Controls
  4. Segregation of Duties for Core Business Processes
  5. Bookkeeping: Journals, Subsidiary Ledgers and General Ledger
  6. Bookkeeping: Payroll And Expenses
  7. Bookkeeping: Accounts Payable/Accounts Receivable And Receipts
  8. Effectively Managing and Controlling Travel and Entertainment (T&E) Expenses
  9. Management Internal Control Essentials
  10. Financial Statement Essentials for Not-for-Profits
  11. Not-for-Profit Financial Statements Part 2
  12. Not for Profit Financials - Focus on Net Assets
  13. Cyber Risk in Small-Medium Entities
  14. Fraud in Small-Medium Entities

Prerequisites

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course. However, it is recommended to take the other courses in the series prior to completing this one.

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 Syllabus
INTRODUCTION AND OVERVIEW
  4:04Introduction to ASU-2016-14 Not-for-Profit Financial Statements Part Two: Focus on Statement of Activities ...
  9:42Statement of Activity (SOA)
  14:42Internal Report Format
  9:16Presentation Alternatives
  10:22Statement of Cash Flow (SCF)
  7:44Enhanced Disclosures Expenses
  3:50Investment Expenses
  1:43Summary
CONTINUOUS PLAY
  1:01:13ASU-2016-14 Not-for-Profit Financial Statements Part Two: Focus on Statement of Activities and Statement of Cash Flow
SUPPORTING MATERIALS
  PDFSlides: ASU-2016-14 Not-for-Profit Financial Statements Part Two
  PDFASU-2016-14 Not-for-Profit Financial Statements Part Two Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM