The Financial Accounting Standards Board (FASB) issued new rules for nonprofits on August 18, 2016. This is the first major set of changes to nonprofit financial statement presentation standards since 1993. The new rules took effect in December 2017.
Goals of New FASB Rules
FASB’s goals focus on improving the delivery of information for donors, grant makers, creditors, board members and others who read nonprofit financial statements. These rules simplify how a nonprofit can tell its story through its financial statements. FASB’s intent is to boost the usefulness of nonprofit financial statements and reduce complexities and costs associated with financial reporting.