Instructor for this course

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: June 20, 2021

Included In Certifications

This course is included in the following Certification Programs:

15 CoursesNot-For-Profit and Small Business Entities Certification

  1. Introduction to Accounting For 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

3 Reviews (35 ratings)Reviews

Anonymous Author
Good overview of Accounting Standards Update 2016-14 and overall financial statement presentation for non profits.
Member's Profile
A thorough and well-paced presentation. Lynn Fountain never disappoints - I would recommend all of her courses.
Member's Profile
I am enjoying this series of courses and learning a lot in the process.


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

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
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 .

2 QuestionsCourse Questions and Answers

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

Course Syllabus
  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
  3:51Investment Expenses
  1:01:16ASU-2016-14 Not-for-Profit Financial Statements Part Two: Focus on Statement of Activities and Statement of Cash Flow
  PDFSlides: ASU-2016-14 Not-for-Profit Financial Statements Part Two
  PDFASU-2016-14 Not-for-Profit Financial Statements Part Two Glossary/Index