Project Update

Not-for-Profit Financial Reporting: Other Financial Communications

Last updated on May 2, 2013. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.

(Updated sections are indicated with an asterisk *)

The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.

Project Objective(s)
*Decisions Reached at Last Meeting
*Next Steps
*Board/Other Public Meeting Dates
Background Information
Contact Information

Project Objective(s)

The objective of this project is to study communications other than financial statements that not-for-profit entities use to tell their financial story. The FASB staff will, for example, review existing best practices followed by not-for-profit entities to discern how such communications enhance the understanding of donors, creditors, and other stakeholders about the financial health and performance of the organization. Through this effort, the Board expects to learn whether educational or standard-setting efforts can contribute to promoting such other effective means of communication. 

*Decisions Reached at Last Meeting (May 2, 2013)

The Board discussed the results of the research performed to date on existing other financial communication frameworks (e.g. GASB Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments) and financial communications in the not-for-profit sector today. The Board decided to issue a Discussion Paper to solicit input from the not-for-profit sector; the feedback would be used in assisting the Board when making a decision of whether to add this project to their standard-setting agenda. The Board decided that the issuance date should coincide with the issuance date of the Exposure Draft on the Not-for-Profit Financial Reporting: Financial Statements project. The Board noted that this would bring more attention to the Discussion Paper as well as provide a better basis for stakeholders to provide input. Based on the current technical plan, the Discussion Paper would be issued in the fourth quarter of 2013.

*Next Steps

The staff is currently drafting a Discussion Paper. As decided by the Board at its May 1, 2013 meeting, the issuance of this document should coincide with the Exposure Draft on the Not-for-Profit Financial Statements project.

*Board/Other Public Meeting Dates

The Board meeting minutes are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.

Background Information

The staff conducted a survey of the Other Financial Communications Resource Group, an advisory group of stakeholders from the Not-for-Profit industry. That survey asked Resource Group members’ for their opinions regarding the existence, availability, and sufficiency of other financial communications outside of the financial statements and notes by not-for-profit organizations. The respondents represented various industries, organization sizes, and constituent types.

The staff provided a summary of the survey responses to NAC members at the September 2012, NAC Meeting.

On November 9, 2011, the FASB chairman announced (press release) the addition of two agenda projects—this research project and a standards-setting project (Not-for-Profit Financial Reporting: Financial Statements)—intended to improve financial reporting of not-for-profit entities. The objectives of these projects encompass suggestions received by the Board from its Not-for-Profit Advisory Committee (NAC) at the Committee’s September 2011 meeting. The staff discussed the plans and approach for both projects with the NAC at its March 2012 meeting. The NAC page contains handouts and minutes from that meeting. An April 2012 podcast outlines the objectives of the two projects.

Contact Information