Project Update

Not-for-Profit Financial Reporting: Other Financial Communications

Last updated on February 12, 2014

(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 (January 29, 2014)

The Board voted to remove the Not-for-Profit Financial Reporting: Other Financial Communications project from the agenda. Individual Board members based their decisions on different factors including the (1) availability of resources, (2) need to prioritize efforts on most immediate standard-setting needs of stakeholders, (3) likelihood that any recommendations resulting from the project could be voluntary rather than mandatory reporting standards, and (4) concern that the project is dealing with an issue that is beyond the scope of traditional Board activities for reporting information within the bounds of basic financial statements.

*Next Steps

On January 29, 2014, the Board met to prioritize the FASB's agenda and voted to remove this project from the Board's agenda.

*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.

*January 29, 2014 Board Meeting—Agenda Prioritization Meeting
May 1, 2013 Board Meeting—Report on research performed and decision regarding issuing an Invitation to Comment
November 9, 2011 Board Meeting—Agenda Announcement

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

Ronald J. Bossio
Senior Project Manager
rjbossio@fasb.org

Don Kim
Postgraduate Technical Assistant
dkim@fasb.org