Implementing ASU 2016-14 Not-For-Profit Financial...

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Implementing ASU 2016-14 Not-For-Profit

Financial Statement New Reporting Standards

TUESDAY, NOVEMBER 28, 2017, 1:00-2:50 pm Eastern

FOR LIVE PROGRAM ONLY

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By Travis Carey and Robert A. Dyson

Implementing ASU 2016-14 on thePresentation of Not-for-ProfitFinancial StatementsChanges Aim to Provide More Relevant Information and Perspective

24 APRIL 2017 / THE CPA JOURNAL

In August 2016, FASB issued Accounting StandardsUpdate (ASU) 2016-14, Presentation of FinancialStatements of Not-for-Profit Entities, with the statedpurpose of improving financial reporting by not-for-profit entities (NFP). Among other provisions, ASU

2016-14 reduces the number of classes of net assets fromthree to two, requires the presentation of expenses in bothnatural and functional classifications, and eliminates therequirement to prepare a reconciliation in the statement ofcash flows when applying the direct method. It also revisesthe definitions of certain terms, which are presented in thesidebar, Changes in the Master Glossary. FASB has relegatedsome of the changes contemplated in the original exposuredraft, including intermediate measures of operations, definingsuch measures, and aligning the operating definitions in thestatements of activities and cash flows, to a second phase ofthe project, to be addressed in the future.

APRIL 2017 / THE CPA JOURNAL 25

IN BRIEFFASB’s Accounting Standards Update (ASU) 2016-14,Presentation of Financial Statements of Not-for-Profit Entities,contains changes in reporting requirements that will signifi-cantly affect how nonprofits communicate with stakeholders.The authors walk through how the ASU affects the presenta-tion of an organization’s financial statements, particularly liq-uidity and the availability of resources, financial performance,and cash flow. An example using a hypothetical nonprofitillustrates the changes to asset classes and the alternativesin the statement of activities.


ASU 2016-14 was amended by ASU2016-18, Restricted Cash, and ASU2017-02, Clarifying When a Not-for-Profit Entity That Is a General Partneror a Limited Partner Should Consolidatea For-Profit Limited Partnership orSimilar Entity. ASU 2016-18 requiresthat cash restricted by donors and otheroutsiders be combined with unrestrictedcash in the statement of cash flows.ASU 2016-14 is effective for fiscal

years beginning after December 15,2017, with early application permitted.It should be applied on a retrospectivebasis; an NFP, however, has the optionto omit the analysis of expenses by both“functional” and “natural” classification,as well as certain disclosures about liq-uidity and availability of resources, forany comparative periods originally pre-sented before the period of adoption.To date, Form 990 and related state tax

forms have not been revised to reflect theASU. NFPs may wish to defer early adop-tion of ASU 2016-14 until the forms’instructions are revised to reflect the update.This article provides an example of

implementing ASU 2016-14 that focusedon the following concepts: n Liquidity and availability of resourcesn Financial performancen Cash flow reporting.

Delta NFPDelta Education and Cultural

Development Agency (Delta) is an NFPthat operates educational and cultural pro-grams. Delta elected to adopt ASU 2016-14 for its fiscal year ending on June 30,2018. Exhibits 1 and 2 present the effectsof adopting ASU 2016-14 on the state-ment of financial position and endowmentfunds, respectively. Exhibits 3 and 4 pre-sent the effect of adopting ASU 2016-14on the statement of activities.

Liquidity and Availability of ResourcesNFP resources may be limited due to

donor restrictions, contractual obligations,

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Board-designated endowment fund: An endowment fund created by an NFP’sgoverning board by designating a portion of its net assets without donor restrictionsto be invested to provide income for a long, but not necessarily specified, period.

Board-designated net assets: Net assets without donor restrictions subject toself-imposed limits by action of the governing board. Board-designated netassets may be earmarked for future programs, investment, contingencies, pur-chase or construction of fixed assets, or other uses.

Donor-imposed restriction: A donor stipulation that specifies a use for a con-tributed asset that is more specific than broad limits resulting from the nature ofthe NFP, the environment in which it operates, or the purposes specified in itsarticles of incorporation or bylaws.

Donor-restricted endowment fund: An endowment fund created by a donorstipulation requiring investment of the gift in perpetuity or for a specified term.

Donor-restricted support: Donor-restricted revenues or gains from contributionsthat increase net assets with donor restrictions.

Endowment fund: An established fund of cash, securities, or other assets toprovide income for the maintenance of an NFP. The use of the fund’s assetsmay be with or without donor-imposed restrictions. Endowment funds establishedby donor-restricted gifts may provide income either in perpetuity (permanentendowment) or for a specified period (term endowment).

Functional expense cassification: A method of grouping expenses according tothe purpose for which costs are incurred. The primary functional classifications ofan NFP are program services and supporting activities.

Natural expense classification: A method of grouping expenses according tothe kinds of economic benefits received in incurring those expenses, such assalaries and wages, employee benefits, professional services, supplies, interestexpense, rent and utilities, and depreciation

Net assets with donor restrictions: The portion of net assets subject to donor-imposed restrictions.

Net assets without donor restrictions: The portion of net assets not subject todonor-imposed restrictions.

Programmatic investing: The activity of making loans or other investments thatare directed at carrying out an NFP’s exempt purpose rather than investing in thegeneral production of income or appreciation of an asset. An example is a loanmade to lower-income individuals to promote home ownership.

Underwater endowment fund: A donor-restricted endowment fund for whichthe fair value of the fund at the reporting date is less than either the original giftamount or the amount required to be maintained by the donor or by law thatextends donor restrictions.

CHANGES IN THE MASTER GLOSSARY


or board designations. Current accountingguidance focuses on the existence orabsence of donor-imposed restrictions bypresenting an NFP’s net assets and revenuein three classes: permanently restricted (thedonor stipulates the amounts that can neverbe used), temporarily restricted (the donorrestriction expires when the stipulated timehas elapsed, when the stipulated purposehas been fulfilled, or both), and unrestricted(the amounts can be used for any activityconsistent with the NFP’s exempt purpose). The current guidance also does not iden-

tify all amounts that are not available forgeneral operations. Resources limited bygrantors, laws, and contracts are not clearlypresented, even though they affect anNFP’s liquidity. In addition, the statementof financial position does not reflect lawsthat permit access to certain amounts ofpermanently restricted net assets.

Background. As shown in Exhibit 1,Delta’s statement of financial position asof July 1, 2017, presents temporarydonor restrictions of $10,050,000 andpermanent donor restrictions of$9,000,000, broken down as follows.In 2004, Delta received a gift restricted

to the purchase of land and building. Deltaelected to classify the gift as temporarilyrestricted and recognize the release fromrestrictions over the building’s useful life,which approximates depreciation. At June30, 2017, the net carrying value of thefacility was $2 million. In addition, thedonor specified that Delta use its ownfunds to maintain a separate bank accountwith a balance no less than $250,000 untilJune 30, 2022, to be used solely for majorrepairs and replacements of that facility.Although the donor did not provide thefunds, its requirement to maintain a majorrepairs and replacements account is adonor-imposed stipulation on the use ofresources; accordingly, Delta recorded the$250,000 as temporarily restricted netassets and restricted cash.Temporarily restricted net assets also

include $5 million of other donor-restrict-

ed contributions. This amount included$1.5 million, which the board designatedas an endowment fund, and a $900,000gift, which is restricted to the renovationof Delta’s facility (which had not begunas of June 30, 2017) and the purchase ofequipment for the educational programs.The amount and use of the board-desig-nated endowment fund is totally atDelta’s discretion.Permanently restricted net assets

include one endowment fund with anoriginal balance of $8 million. It isdeemed an “underwater endowmentfund” because it incurred net unrealizedlosses of $500,000, leaving it with a bal-ance of $7.5 million. Applying the cur-rent guidance, Delta reflected the$500,000 in unrestricted net assets.In the year ended June 30, 2016, Delta

received a gift of $1 million, whichrequired the establishment of a $3 millionmatching fund. The gift permits Delta tospend all income generated by the orig-inal gift and matching fund, whichincludes interest and dividends as wellas realized and unrealized gains and loss-es on the underlying investments. Inaddition, Delta may reduce the matchingfund balance by no more than $200,000per year, either by reflecting unrealizedlosses on the investments or by expen-ditures. Delta classified the $1 milliongift in permanently restricted net assets.Applying the same policy as discussedabove in the major repairs and replace-ments account, Delta accounted for the$3 million matching fund as restrictedcash and in temporarily restricted netassets. At June 30, 2017, the balance wasreduced to $2.8 million as a result of anet unrealized loss of $150,000 and theexpenditure of $50,000 for operations.

The new guidance. ASU 2016-14 doesmore than change the categorization of netassets. The objective of ASU 2016-14 isto clearly present an NFP’s liquidity andability to operate. Unrestricted net assetsare now called “net assets without donor

restrictions.” Permanently restricted andtemporarily restricted net assets are com-bined into “net assets with donor restric-tions.” An NFP may elect to continue topresent net assets with perpetual donorrestrictions and those expected to bereleased from restrictions over time or fora particular purpose. Regardless of thedetail in the presentation, the NFP mustpresent total net assets with donor restric-tions, total net assets without donor restric-tions, and total net assets in the statementof financial position.Other provisions of ASU 2016-14 may

affect both the balances of the differentclasses of net assets and those of endow-ment funds. For example, contributionsrestricted to the acquisition of long-livedassets are currently recorded as increasesin temporarily restricted net assets; therelease from restrictions can either be whenthe asset is acquired and placed in serviceor over its useful life. ASU 2016-14removes that option. Although NFPs arestill required to classify contributionsrestricted to acquire long-lived assets asdonor-restricted support, the contributionsare released from restrictions and reclas-sified to net assets without donor restric-tions when the asset is acquired and placedinto service, unless the donor placed a timerestriction on the use of the asset.As with the current guidance, ASU

2016-14 requires the recognition of netassets released from restrictions in the peri-od the stipulated time has elapsed, whenthe stipulated purpose has been fulfilled, orboth. At that time, the amount is reclassifiedfrom net assets with donor restrictions tonet assets without donor restrictions.Changes in the accounting for net

assets currently classified as permanentlyrestricted reflect laws permitting appro-priation by the NFP. In New York State,the New York Prudent Management ofInstitutional Funds Act (NYPMIFA) per-mits the governing board, after consid-ering eight specific factors, to appropriatea “prudent” expenditure of funds from a


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EXHIBIT 1Conversion of the Statement of Financial Position under Current Guidance ASU 2016-14, as of July 1, 2017

Assets Current Guidance Adjustments ASU 2016-14Cash and cash equivalents $1,530,000 N/A(2) $1,530,000Restricted cash 3,050,000 N/A(2) 3,050,000Short-term investments 6,450,000 N/A(1) 6,450,000Accounts receivable—net 1,140,000 N/A(1) 1,140,000Contributions receivable 3,200,000 N/A(1) 3,200,000Prepaid expenses and other assets 630,000 N/A(1) 630,000Long-term investments 15,500,000 N/A(1) 15,500,000Property and equipment 2,500,000 N/A(1) 2,500,000Total assets $34,000,000 $34,000,000

Liabilities and net assets Liabilities Accounts payable and accrued liabilities $9,200,000 N/A(1) $9,200,000Deferred revenue 1,050,000 N/A(1) 1,050,000Notes payable 1,000,000 N/A(1) 1,000,000Total liabilities $11,250,000 11,250,000

Net assets Unrestricted $3,700,000 (3,700,000) Without donor restrictions 6,200,000(3) $6,200,000Temporarily restricted 10,050,000 (10,050,000) Permanently restricted 9,000,000 (9,000,000) With donor restrictions 16,550,000(3) 16,550,000Total net assets 22,750,000 22,750,000Total liabilities and net assets $34,000,000 $34,000,000

Notes:(1) ASU 2016-14 has no effect on this line item.(2) Delta may elect to combine cash and cash equivalents and restricted cash into one line item on the statement of financial position and disclose the com-ponents in a note. If it chooses not to combine these items, ASU 2016-18 requires a reconciliation of the line items and amounts of cash, cash equivalents,and restricted cash reported within the statement of financial position to cash, cash equivalents, and restricted cash in the statement of cash flows. This rec-onciliation can be presented in the statement of cash flows or in the notes to the financial statements. Delta elected to present these items separatelybecause restricted cash represents 2/3 of total cash and cash equivalents, which could mislead users on the amount of unrestricted cash and cash equiva-lents. A sample disclosure is presented in Note A below.(3) Changes in net assets as a result of adopting ASU 2016-14 are as follows: Without Donor Restrictions With Donor Restrictions TotalUnrestricted $3,700,000 $3,700,000Temporarily restricted $10,050,000 10,050,000Permanently restricted 9,000,000 9,000,000Total $3,700,000 $19,050,000 $22,750,000Adjustments required by ASU 2016-14 Property reclassified as without donor restrictions(4) 2,000,000 (2,000,000) –Underwater endowment(5) 500,000 (500,000) –Total per ASU 2016-14 $6,200,000 $16,550,000 $22,750,000(4) ASU 2016-14 requires that contributions restricted to acquire long-lived assets be released from restrictions and reclassified to net assets without donor restric-tions when the asset is acquired and placed into service, unless the donor placed a time-restriction on the use of the asset.(5) ASU 2016-14 requires an underwater donor-restricted endowment fund to include any accumulated losses with that fund in net assets with donor restrictions.

Note A:The following table provides a reconciliation of total cash, cash equivalents, and restricted cash within the statement of financial position to the same amounton the statement of cash flows: 6/30/17Cash and cash equivalents $1,530,000Restricted cash 3,050,000Total cash, cash equivalents, and restricted cash shown $4,580,000in the statement of cash flowsAmounts included in restricted cash are a $2.8 million matching fund related to a donor-restricted gift of $1 million and $250,000 to be used for major repairs and replacements of a facility purchased with a gift. The matching fund restriction lapses at $200,000 per year. The major repairs and replacementsrestriction lapses at June 30, 2022.


donor-restricted endowment fund (cur-rently classified as permanently restrictednet assets). At that time, the appropriatedamount is reclassified from net assetswith donor restrictions to net assets with-out donor restrictions. NYPMIFA is sim-ilar to the nationwide model, the UniformPrudent Management of InstitutionalFunds Act; a fuller discussion of both isbeyond the scope of this article. Endowment funds are created either by

one or more donors or by an NFP’s gov-erning board. Endowment funds createdby a donor who stipulates restrictions onthe use of the assets to specific activities,to specific future time periods, or in per-petuity are classified in net assets withdonor restrictions. Endowment funds cre-ated by an NFP’s governing board are gen-erally reported in net assets without donorrestrictions, because the governing boardcan reverse its decision to create the fund.ASU 2016-14 notes, however, that aboard-designated endowment fund mayinclude a portion of net assets with donorrestrictions. For example, Delta’s decisionto designate $1,500,000 of donor-restrictedcontributions as an endowment fundresults in a donor-restricted, board-desig-nated endowment fund.As seen in Exhibit 1, Notes 3 and 5, a

donor-restricted endowment fund that is

underwater should include the accumulat-ed losses of that fund in net assets withdonor restrictions and not in net assetswithout donor restrictions. The NFP isrequired to disclose the fair value of theunderwater endowment funds, the originalgift required to be maintained by donorstipulation, and the amount of deficienciesin the underwater endowment funds.ASU 2016-14 also enhances disclo-

sures regarding liquidity and how restric-tions affect the use of resources. Itexpands disclosure requirements on thenature and amounts of different types ofdonor-imposed restrictions as well as theamounts and purposes of board-designat-ed net assets. Furthermore, ASU 2016-18 requires disclosure of the nature ofthe restrictions on cash while also com-bining restricted cash with unrestrictedcash on the statement of cash flows.Other than changes in the net asset

section, ASU 2016-14 does not changethe format of the statement of financialposition. It does, however, change theformat of the statement of activities, asdiscussed below.

Financial PerformanceASU 2016-14 aligns current reporting

requirements in the statement of activitiesto the two new classifications of net assets.

The statement of activities reports revenuesas “increases in net assets without donorrestrictions,” unless the use of the assetsreceived is limited by donor-imposedrestrictions. Donor-restricted contributionswhose restrictions are met in the samereporting period received may, however,be reported as “unrestricted support in netassets without donor restrictions,” providedthat an NFP has a similar policy for report-ing investment gains and income, reportsconsistently from period to period, and dis-closes its accounting policy. Expenses arereported as decreases in net assets withoutdonor restrictions. ASU 2016-14 presentsthree alternate formats for the statement ofactivities: n Format A presents a single column,which facilitates comparative financialstatementsn Format B presents the threecolumns—without donor restrictions,with donor restrictions, and totaln Format C presents two statements ofactivities—one showing changes in netassets without donor restrictions, and oneshowing changes in net assets with donorrestrictions.Formats A and B are illustrated in

Exhibits 3 and 4, respectively.All three formats separate program

activities from supporting activities.

EXHIBIT 2Changes in Endowment Funds under ASU 2016-14, as of June 30, 2017

Board-Designated Donor-Restricted Total Endowment Endowment Funds Endowment Funds Net AssetsAs originally reported(1) $700,000 $9,500,000 $10,200,000Designation of time-restricted contributions 1,500,000 (1,500,000) –Underwater endowment 500,000 (500,000) –Total $2,700,000 $7,500,000 $10,200,000Note: (1) In addition to the endowment funds described in Exhibit 1, Delta previously established a $1.2 million board-designated endow-ment fund in unrestricted net assets (now net assets without donor restrictions). The fiscal 2017 financial statements offset this fundwith the net unrealized loss associated with the endowment fund reflected in permanently restricted net assets.


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EXHIBIT 3Presentation of the Statement of Activities for the Year Ended June 30, 2018ASU 2016-14: Format A

Changes in net assets without donor restrictionsRevenues and gainsContributions $13,430,000Grants 1,980,000Fees 600,000Investment return(1) 1,100,000Total revenues and gains without donor restrictions $17,110,000

Net assets released from restrictions Satisfaction of program restrictions $3,000,000Satisfaction of equipment acquisition restrictions 600,000Expiration of time restrictions 200,000Appropriations from endowments 900,000Total net assets released from restrictions 4,700,000Total revenues, gains, and other support without donor restrictions $21,810,000

Expenses and losses Educational programs $11,000,000Cultural programs 6,100,000Management and general 2,100,000Fundraising 1,500,000Interest 50,000Total expenses $20,750,000

Increase in net assets without donor restrictions $1,060,000

Changes in net assets with donor restrictionsContributions $4,200,000Investment returns, net(2) 100,000Net assets released from restrictions(Note B) (4,700,000)Decrease in net assets with donor restrictions (400,000)

Increase in total net assets $660,000

Net assets at beginning of year $22,750,000Net assets at end of year $23,410,000

Note BNet assets were released from donor restrictions by incurring expenses satisfying the restricted purposes or by the occurrence of the passage to time.

Purpose restrictions accomplishedEducational program expenses $1,800,000Cultural program expenses 1,200,000Total program expenses 3,000,000Educational program equipment acquired and placed into service(3) 600,000Time restrictions expired 200,000Release of appropriated endowment amounts without purpose restrictions 400,000Release of appropriated endowment amounts with purpose restrictions(4) 500,000Total restrictions released $4,700,000

Notes:(1) This represents earnings from investments that were not associated with endowment funds where the donor restricted their use.(2) This represents earnings from donor-restricted endowment funds whose use is limited by donor stipulations.(3) The original $900,000 contribution was restricted to the renovation of Delta’s facility and the purchase of equipment for the educational pro-gram. Delta purchased $200,000 of equipment for its educational programs and spent $400,000 on facility renovations, which have been placedin service. The remaining $300,000 was spent on renovations not completed as of June 30, 2018, and therefore remain temporarily restricted.(4) The board appropriated $500,000 of the $1,500,000 donor-restricted net assets that the board had earlier designated as an endowment fund.


Program activities consist of services ren-dered to beneficiaries that fulfill the NFP’smission. Those services are the major pur-pose for Delta and relate to both educa-tional and cultural programs. Supportingactivities are all of Delta’s activities otherthan program services. Generally, support-ing activities include management andgeneral activities, fundraising activities, andmembership development activities.

ASU 2016-14 permits the presentationof intermediate measures of operations.Because “intermediate measures of oper-ations” is defined by the reporting entity,the ASU requires disclosure of thedescription of the nature of the term “oper-ations” if it is not apparent from the detailsprovided on the face of the financial state-ments. ASU 2016-14 generally considersrevenues as being derived from transac-

tions that are part of the NFP’s centralactivities, and gains and losses as beingderived from incidental and peripheraltransactions or from events and circum-stances beyond the control of the NFP.Incidental or peripheral activities includesale of property no longer needed and cer-tain investment gains and losses.Investment gains and losses appropriatedfor operations are reclassified as operating

EXHIBIT 4Presentation of the Statement of Activities for the Year Ended June 30, 2018ASU 2016-14: Format B

Without Donor With Donor Restrictions Restrictions TotalOperating revenues and gainsContributions $13,430,000 $4,200,000 $17,630,000Grants 1,980,000 1,980,000Fees 600,000 600,000

Net assets released from restrictionsSatisfaction of program restrictions 3,000,000 (3,000,000)Satisfaction of equipment acquisition restrictions 600,000 (600,000)Expiration of time restrictions 200,000 (200,000)Appropriation from donor restricted endowments 900,000 (900,000)Total operating revenues and gains $20,710,000 $(500,000) $20,210,000

Operating expenses and losses Educational programs $11,000,000 $11,000,000Cultural programs 6,100,000 6,100,000Management and general 2,100,000 2,100,000Fundraising 1,500,000 1,500,000Total operating expenses $20,700,000 $20,700,000

Operating revenues and gains in excess of $10,000 $(500,000) $(490,000)operating expenses

(Other items considered to be nonoperating)Investment returns, net $1,100,000 100,000 $1,200,000Interest expense (50,000) (50,000)

Change in net assets $1,060,000 $(400,000) $660,000

Net assets at beginning of year 6,200,000 16,550,000 22,750,000Net assets at end of year $7,260,000 $16,150,000 $23,410,000


activities; contributions to endowmentfunds are reclassified to non-operatingactivities. Delta’s statement of activitiesshowing the intermediate measure ofoperations is presented in Exhibit 4. Gains and losses on investments (other

than programmatic investing) and otherassets (or liabilities) are recognized asincreases or decreases in net assets with-

out donor restrictions unless their use isrestricted by explicit donor stipulationsor by law. In a change required by ASU2016-14, external and direct internalinvestment expenses are netted againstinvestment returns and reported in thenet asset category in which the netinvestment return is reported. In addition,these expenses are no longer required tobe disclosed.Direct internal investment expenses

involve the direct conduct or direct super-vision of the strategic and tactical activ-ities involved in generating an investmentreturn. These include costs associatedwith the officer and staff responsible forthe development and execution of invest-ment strategy, such as salaries, benefits,and travel, as well as other allocable costsassociated with internal investment man-agement and supervising, selecting, andmonitoring external investment manage-ment firms.

A new requirement of ASU 2016-14is to provide information ordinarilyincluded in a statement of functionalexpenses for all NFPs. Currently, onlyvoluntary health and welfare organiza-tions are required to provide this infor-mation. ASU 2016-14 requires apresentation of the relationship betweenfunctional and natural classification for

all expenses in an analysis that disaggre-gates functional expense classifications(such as major classes of program ser-vices and supporting activities) by theirnatural expense classifications. Thisinformation should be presented on theface of the statement of activities, as aschedule in the notes to the financialstatements, or in a separate financialstatement, such as a statement of func-tional expenses.Because certain activities benefit more

than one function, costs reflecting directsupervision of program or other supportingactivities are allocated from managementand general to program activities. Forexample, Delta’s CEO is responsible foroversight of both program and administra-tive activities. Administrative activitiesinclude spending time with current andpotential donors during fund-raising andsupervising administrative activities. As aresult, Delta allocated a portion of the

CEO’s compensation and benefits andother expenses to program, fund-raisingand management, and general functionsbased on the time spent on those activities.In addition, information technology directlybenefited management and general, fund-raising, and program delivery. Accordingly,information technology costs were allocat-ed among those functions.In contrast, Delta’s human resources

department was involved in the benefitsadministration for all personnel. Thehuman resources department’s relatedcosts were not allocated to any specificprogram; rather, those costs were chargedto management and general expensesbecause benefits administration is a sup-porting activity for the entire entity.

Statement of Cash FlowsASU 2016-14 permits NFPs to present

operating cash flows using either thedirect method or the indirect method, butno longer requires the reconciliation ofthe change in net assets to net cash pro-vided by (used in) operating activities ifan NFP elects to apply the direct method.FASB concluded that removing therequirement to prepare the reconciliationwhen the direct method is applied mightencourage more NFPs to choose thedirect method.

Prepare for Changing PresentationASU 2016-14 contains additional

changes that affect the presentation offinancial statements. Financial statementpreparers should review the update todetermine its effect on their own partic-ular circumstances and whether theyneed to expand their current financialstatement disclosures. q

Travis Carey, CPA, is managing directorof Carey LLC, New York, N.Y. RobertA. Dyson, CPA, is the director of qualitycontrol at MBAF CPAs LLC, New York,N.Y, as well as a member of The CPAJournal Editorial Board.

InFOCUS

ASU 2016-14 enhances disclosures regarding liquidity

and how restrictions affect the use of resources.

Implementing ASU 2016-14 Not-For-Profit Financial...

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