Functional Expense Reporting Gets a Facelift

Article Excerpt:

Changes to not-for-profit financial statements and disclosures, as described in Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) 2016-14, include new requirements for functional expense reporting and additional related note disclosures. The ASU also contains enhanced definitions of management and general expenses.

This might be a good time to review the presentation of your organization’s financial statements to determine if any of the changes outlined in this e-newsletter affect them.