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Questions and Answers
ASU 2016-14 requires an NFP to report amounts for net assets with ______ restrictions and net assets without donor restrictions
donor
ASU 2016-14 requires an NFP to provide qualitative information on how an NFP manages its liquid resources available to meet ______ needs
cash
ASU 2016-14 requires an NFP to report investment return net of external and direct internal investment expenses and no longer require disclosure of those netted ______
expenses
ASU 2016-14 requires an NFP to use the placed-in-service approach for reporting expirations of restrictions on gifts of cash or other assets to be used to acquire or construct a long-lived asset and reclassify any amounts from net assets with donor restrictions to net assets without donor restrictions for such long-lived assets that have been ______ in service
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ASU 2016-14 aims to improve the usefulness of the information provided to donors, grantors, creditors, and other users of an NFP’s financial statements, reduce complexities or costs for preparers or users of financial statements, or both improve usefulness and ______ complexity
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______ addresses the statement of activities and aims to improve financial statement presentation by not-for-profit organizations—a model that has existed for more than 20 years. It affects NFPs and the users of their general-purpose financial statements. The main provisions of this Update require an NFP to: ______ CAYANAN, CAMILLE C.
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______ affects NFPs and the users of their general-purpose financial statements. The main provisions of this Update require an NFP to:
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______ aims to improve financial statement presentation by not-for-profit organizations—a model that has existed for more than 20 years. It affects NFPs and the users of their general-purpose financial statements. The main provisions of this Update require an NFP to:
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The amendments in this Update affect ______ and the users of their general-purpose financial statements. The main provisions of this Update require an NFP to:
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The main provisions of this Update, which amend the requirements for financial statements and notes in ______, Not-for-Profit Entities, require an NFP to:
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Study Notes
ASU 2016-14 Overview
- ASU 2016-14 requires non-profit organizations (NFPs) to report net assets with restrictions and net assets without donor restrictions.
- NFPs must provide qualitative information on managing liquid resources to meet short-term financial needs.
- Investment returns should be reported net of external and direct internal investment expenses, eliminating the need for disclosure of those netted expenses.
Reporting and Classification
- NFPs are required to use the placed-in-service approach for reporting the expiration of restrictions on gifts for long-lived assets.
- Any amounts related to long-lived assets that have been placed in service should be reclassified from net assets with donor restrictions to net assets without donor restrictions.
Goals of ASU 2016-14
- Aims to enhance the utility of information for donors, grantors, creditors, and other financial statement users.
- Seeks to reduce complexities or costs associated with preparing and using financial statements while improving their usefulness.
Financial Statement Presentation Changes
- ASU 2016-14 targets improvements in the statement of activities to modernize financial statement presentation for NFPs.
- It impacts both NFPs and users of their general-purpose financial statements.
Amendments and Provisions
- The amendments from ASU 2016-14 affect financial statement requirements and notes for not-for-profit entities.
- Key provisions mandate specific changes in how NFPs prepare financial statements and disclose information.
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Description
Test your knowledge of non-profit organizations' recognition and measurement principles in this quiz. Explore concepts related to the measurement of cash and non-cash assets, revenue from unrestricted and restricted contributions, and their impact on net assets.
