The FASB has issued a proposed Accounting Standards Update (ASU) including not-for-profit standards. These proposed changes are the most significant since 1993. Change of net asset classification requirements, information presented about a not-for-profit’s liquidity, financial performance, and cash flows are amongst the major changes in this update. The FASB’s Not-for-Profit Advisory Committee (NAC) and other stakeholders voice that while the current standards for NFPs are sound, they could be improved to better provide information to donors, creditors, and other users of financial statements. To see in more detail what the proposed changes would include, please click here.