October 8, 2018
Liquidity Disclosures Impact Nonprofit Financial Reporting
The financial reporting landscape for nonprofit organizations continues to change as standard setting organizations refine and enhance financial reporting requirements to increase transparency. The implementation of Accounting Standards Update (ASU) 2016-04, Not-for-Profit Entities, Presentation of Financial Statements for Not-for-Profit Entities, has ushered in several changes that nonprofits need to follow in the reporting process. One of the key changes made was the new requirement to make liquidity disclosures. Essentially, organizations are now required to provide financial statement readers with disclosures about liquidity including liquidity risk, restrictions and overall availability of assets.
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