Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Direct cash flow method – Tentative decisions from FASB about NPO reporting

leave a comment »

On 10-23-13, FASB tentatively decided to require NPOs to use the direct method when preparing a statement of cash flow.

You can see the discussion here.

My summary of some other minor changes:

  • Donor contributions with restrictions for long-term assets would be an operating cash flow instead of financing.
  • Outflows to meet those restrictions would likewise be operating instead of financing.
  • Investment income would be investing cash flow instead of operating.

These items will show up in a future ED. Lots of other issues are on the table for future discussion.

(Thanks to Bill for the tip.)

Written by Jim Ulvog

October 25, 2013, 8:51 am at 8:51 am

Posted in Accounting

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: