December 31, 2018 will see significant changes to not-for profit (NFP) financial reporting.  ASU 2016-14, Presentation of Financial Statements of not-for-profit entities will become 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.

In April 2015, an exposure draft was released with the comment period ending in August 2015.

In October 2015, the board split the proposed update into two phases:

  • Phase 1 Included issues that weren’t dependent on other FASB projects and were improvements the FASB believed could be finalized in the near term. 
    • The ASU that was issued in August 2016 includes the items that were included in Phase 1.
  • Phase 2 This phase includes matters that need further consideration as they may be impacted by decisions made in the Financial Performance Reporting project, which the FASB currently has on its agenda.

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 the not-for-profit financial statements. This particular segment focuses on the changes relevant to net assets and how that impacts financial reporting.  We also explore options available for implementing  requirements. Future segments will focus on the other aspects of ASU 2016-14.

Learning Objectives
  • Explore the history of not-for-profit financial reporting and the evolution to Accounting Standards Update (ASU) 2016-14 - Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities.
  • Explore variances in reporting for not-for-profit entities under Topic 958.
  • Explore changes in reporting of net assets
  • Explore the impact to the statement of financial position (SFP).
  • Explore example formats for the statement of financial position as well as relevant disclosure requirements related to net assets.
Last updated/reviewed: August 28, 2023

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
18 Reviews (73 ratings)


Anonymous Author
Very informative comprehensive course covering new ASU standard. Very relevant to my volunteer work at local NFP.

Anonymous Author
This course is a very high-level overview of ASU 2016-14. I found most of the examples to be relevant and enhancing to the material presented. The last slide on endowments that did not have numbers was very confusing. I find that having actual numbers reinforces my understanding and makes the concept clearer. The instructor also referred to a note on the slide, but the slide did not have the note, so I couldn't follow along.

Member's Profile
The history and evolution of the standard was good to know. I especially appreciated the example slides showing how to classify net assets with the adjustment column and notes. This will be a great resource when auditing NFPs.

Member's Profile
A well-organized and good paced presentation. All of Lynn Fountain's presentations are solid, this one is no different. A good course for those new to non-profits.

Anonymous Author
The course provided good information on ASU-2016-14. Useful comparisons of the prior presentation with the new ASU-2026014 were included.

Anonymous Author
Good explanation and examples of ASU 2016-14. Great for anyone in accounting or on the audit team of an NFP who is somewhat new to NFPs.

Member's Profile
This module would benefit from the use of examples earlier in the presentation, and always with numbers in the examples.

Anonymous Author
Good overview and examples on ASU 2016-14 which helped me get up to speed on financial statement disclosure requirements.

Anonymous Author
The material was clear. I found the introduction helpful, because I did not know about the context of the rule changes.

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

Anonymous Author
As always, this instructor provides a great class and several examples to illustrate her talking points.

Member's Profile
Very informative course for those working with not for profit organizations. Concise and to the point.

Anonymous Author
Good course overall with an important subject matter. Thanks for the reminders and tune-up.

Anonymous Author
Very helpful. There was quite a bit of information on various footnote disclosures.

Member's Profile
Good overview of the changes in reporting of net assets for nonprofits.

Member's Profile
This was an excellent overall course for me to do. I love this author.

Anonymous Author
Delivery was a bit repetitive but the overall material was important

Anonymous Author
Good examples and explanation of the changes to NFP reporting

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

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 .
Instructor for this course
Course Syllabus
  Introduction to ASU-2016-14 Not-for-Profit Financial Statements Part One: Focus on Net assets3:27
  History & Variances in Reporting9:28
  Industry Specific Guidance3:15
  Overview ASU 2016-14 (Topic 958) & Net Assests6:14
  Net Asset Continued...10:53
  Statement of Financial Position (SEP)12:19
  NA Note Disclosures14:02
  ASU-2016-14 Not-for-Profit Financial Statements Part One: Focus on Net assets Full Video1:05:58
  Slides: ASU-2016-14 Not-for-Profit Financial Statements Part One: Focus on Net assetsPDF
  ASU-2016-14 Not-for-Profit Financial Statements Part One: Focus on Net assets Glossary/IndexPDF