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: March 11, 2024

Included In Certifications

This course is included in the following Certification Programs:

15 CoursesNot-For-Profit and Small Business Entities Certification

  1. Introduction to Not-for-Profit Entities
  2. Introduction to 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
  15. Not-For-Profit Accountability and Responsibility
14 Reviews (69 ratings)


Member's Profile
well taught and easy to understand and a good course. it is simple for beginners to learn from the course and covers mostly what is relevant. I can recommend it.

Anonymous Author
Good explanation of ASU 2016-14 and examples of how to apply it. Someone noted in another review that review question 3 (of the practice questions) says the "correct" answer implies that a NFP has shareholders - I missed this one as well for that reason and chose another answer. Please check that question. Also on the Final exam there's a question that asks how the statement of activity shows liquidity - is it supposed to say statement of cash flow? Not sure if that's the one I missed but regardless I wasn't sure what it was getting at.

Member's Profile
The course provides very detailed update per ASU-2016-14 for the Statement of Activities and the Statement of Cash Flow. The examples given were easy to follow.

Anonymous Author
I always enjoy this instructor classes as I always come away by learning something new. She always provides examples that help to illustrate the point.

Anonymous Author
This course provides excellent explanations of the Statement of Activities and the Statement of Cash Flow. The examples given are easy to understand.

Anonymous Author
I'm not sure which course is part 1. The Illumeo platform makes it a bit difficult to see what the other parts are and how they go together.

Member's Profile
I like the written material (both slides and glossary). Also found the presentation to be informative. No dislikes.

Anonymous Author
Good overview of Accounting Standards Update 2016-14 and overall financial statement presentation for non profits.

Member's Profile
Good review of the changes, and good review of the different reporting formats available based on those changes.

Member's Profile
A thorough and well-paced presentation. Lynn Fountain never disappoints - I would recommend all of her courses.

Anonymous Author
The lesson is easy to understand, and the discussion connects to the first part.

Anonymous Author
Lynn provides good explanations and examples to help with NFP reporting

Member's Profile
I am enjoying this series of courses and learning a lot in the process.

Anonymous Author
Good course to gain more knowledge about NFP FS. I would recommend.

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 Questions and Answers(2 Questions)
User picture

I believe the review question 3 of 5 is providing the incorrect answer as correct. NFP's don't have Shareholders so the answer should not be #2, I show it should be #3

Member's Profile

I just checked the full exam and could not identify what question you are referring to. Question three does not refer to shareholders at all. Can you clarify. I also looked at the final exam and did not identify the question

Instructor for this course
Course Syllabus
  Introduction to ASU-2016-14 Not-for-Profit Financial Statements Part Two: Focus on Statement of Activities ...4:04
  Statement of Activity (SOA)9:42
  Internal Report Format14:42
  Presentation Alternatives9:16
  Statement of Cash Flow (SCF)10:22
  Enhanced Disclosures Expenses7:44
  Investment Expenses3:51
  ASU-2016-14 Not-for-Profit Financial Statements Part Two: Focus on Statement of Activities and Statement of Cash Flow 1:01:16
  Slides: ASU-2016-14 Not-for-Profit Financial Statements Part TwoPDF
  ASU-2016-14 Not-for-Profit Financial Statements Part Two Glossary/IndexPDF