FASB updates accounting rules for nonprofits

The Financial Accounting Standards Board has issued new rules for nonprofit companies with an aim of making financial reports easier to complete and understand, according to The Wall Street Journal

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Under the new rules, nonprofits will separate cash into two categories — cash that is currently available and cash the may have contingencies — in financial statements. Current rules require nonprofit companies to separate cash that isn’t immediately available into two categories, according to the report.

The rules also require nonprofits to report two classes of assets, instead of three.

The updated rules apply to annual financial statements issued for fiscal years after Dec. 15, 2017.

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