Preparing for Major Changes in Financial Reporting

| February 1, 2017 | 0 Comments

Lauren Groff, CPA

Lauren Groff, CPA

Lauren Groff, CPA

Changes in accounting standards can impact how associations manage or track data, so it’s crucial that association leaders stay up-to-date on new rules, and work with their auditors to proactively prepare and comply.

One new standard (the Financial Accounting Standards Board’s Accounting Standards Update 2016-14) effectively overhauls the financial-statement reporting model for not-for-profit associations. Designed to simplify how not-for-profit organizations like associations classify net assets and improve the availability of information about an organization’s liquidity, financial performance, expenses and cash flow, the standard seeks to make not-for-profit financial reporting more transparent and easier to compare from organization to organization. Though the rule doesn’t go into effect until 2018, association financial leaders should begin working now to gain a comprehensive understanding of the new standard.

To read the rest of this story in the digital edition of Association News, please click here.

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