This particular segment will focus on the changes relevant to net assets and how that impacts financial reporting.
December 31, 2018 will see significant changes to not-for profit-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) 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 will review the new requirements and provide examples on how they will impact the not-for-profit financials. This particular segment will focus on the changes relevant to net assets and how that impacts financial reporting. We will also explore options available for implementing requirements. Future segments will focus on the other aspects of ASU 2016-14.
Field of Study: Accounting
Lynn Fountain has over 45 years of experience spanning public accounting, corporate accounting and consulting. 24 years of her experience has been working in the areas of internal and external auditing. She is a subject matter expert in multiple fields including internal audit, ethics, fraud evaluations, Sarbanes-Oxley, enterprise risk management, governance, financial management and compliance. Ms. Fountain has held two Chief Audit Executive positions for international companies. In 2011, as the Chief Audit Executive for an international construction/ engineering firm, she was involved in the active investigation of a joint venture fraud. The investigation included work with the FBI and ultimately led to indictment of the perpetrators and recovery of $13M. Ms. Fountain is currently engaged in her own training and consulting business and is a regular trainer for the AICPA. Ms. Fountain is the author of three separate technical books. “Raise the Red Flag – The Internal Auditors Guide to Fraud Evaluations” was published by the Institute of Internal Auditors Research Foundation. -“Leading The Internal Audit Function” and -“Ethics and The Internal Auditor Political Dilemma” were published by Taylor & Francis In addition Ms. Fountain was a contributing author to the certification program exam for the National Association of Accountants. She also has certificate programs on various on-line platforms. Ms. Fountain has performed as an adjunct instructor for the School of Business for Grantham University and developed the first internal audit curriculum for the School of Business at the University of Kansas. Ms. Fountain obtained her BSBA from Pittsburg State University and her MBA from Washburn University in Kansas. She has her CGMA, CRMA credentials and CPA certificate (non-active).
