WHAT THE NEW FASB NONPROFIT ACCOUNTING GUIDELINES REQUIRE: ON RESTRICTED CONTRIBUTIONS, FUNCTIONAL EXPENSES, AND “EYE-OPENING” DISCLOSURES
With the replacement of temporarily and permanently restricted categories for reporting contributions and related net assets, enhanced disclosures require nonprofits to describe more about how restrictions affect the USE OF RESOURCES.
In addition, the issue of classifying costs as program vs. overhead continues to be a focus in the sector. Under the new guidelines, not only must expenses be reported by function, but nonprofits MUST DISCLOSE THE METHODOLOGY used for allocations and whether the methods are consistently applied.
This webinar will summarize the changes and explore the following questions:
- Is your functional expense allocation properly representing your resource allocation strategy?
- Is this an opportunity to refresh your approach?