Associations are witnessing the most sweeping changes to financial reporting since SFAS 116 & 117 more than 20 years ago. CliftonLarsonAllen's Cathy Clarke, CPA will explain all the FASB changes and provide context during ASAE's FBO Virtual Huddle on August 19.
FASB focused on improving net asset classification requirements and information provided in financial statements and notes about liquidity, financial performance and cash flows. This brought about exposure draft(s) announcing:
1) a change from three net asset classes to two
2) a requirement to present an intermediate measure of current operations defined by mission and availability
3) a requirement to provide an analysis of expenses by function and by nature in one location – in the statement of activities, a separate statement of expenses (called a statement of functional expenses), or a schedule in the notes
4) a requirement to utilize the direct method of reporting cash flows provided (used) by operating activities, among other minor changes that will be discussed during the session.