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FASB changes reporting standards for not‐for‐profit organizations
Author(s) -
Foster Mary F.,
Shiah James E.
Publication year - 1994
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.3970050309
Subject(s) - accounting , business , financial accounting , accounting standard , not for profit , fiscal year , accounting management , profit (economics) , finance , accounting information system , economics , microeconomics
Abstract The Financial Accounting Standards Board (FASB) has released two statements (Numbers 116 and 117) that establish standards for external financial reporting by not‐for‐profit (NFP) organizations and the way in which such organizations account for contributions made and received. These standards, which have been under development for six years, are part of a broader project to resolve certain inconsistencies in the reporting practices of NFP organizations. The new standards are effective for financial statements covering fiscal years that begin after December 15, 1994, which for most NFP organizations means their 1995‐96 fiscal years. This article summarizes the significant provisions of the new standards, reviews changes from current practices, and considers the effect of the pronouncements on both NFPs implementing the standards and the users of the financial statements.