Leslie F. Seidman, chairman of the Financial Aounting Standards Board (FASB), today announced the addition of two agenda projects—a standard-setting project and a research project—intended to improve financial reporting of not-for-profit anizations. The objectives of these projects enpass suggestions received by the Board from its Not-for-Profit Advisory mittee at the mittee’s September 2011 meeting.

“The FASB shares the mittee’s belief that, while sound, the existing standards for financial statements of not-for-profit anizations can be updated and improved to provide better information to donors, creditors, and others,” stated Ms. Seidman. “As discussed at today’s Board meeting, FASB members agree it is time to revisit and refresh the not-for-profit financial reporting model, which is nearly two decades old.”

The standard-setting project will focus on the financial statements and related notes that are unique to not-for-profit anizations. It will reexamine existing standards for financial statement presentation by not-for-profit anizations with a focus on improving the current asset classification scheme and information provided in financial statements and notes about an anization’s liquidity, financial performance, and cash flows.

The research project will study other means of munication that not-for-profit anizations currently use in telling their financial story. Specifically, the project will:

1. Review best practices followed by not-for-profit anizations in this area and how such munications enhance the understanding of donors, creditors, and other stakeholders about the financial health and performance of the anization; and
2. Determine whether the Board, through its leadership or standard-setting efforts, can ntribute to promoting such munications.

“On behalf of the FASB, I’d like to thank the members of the Not-for-Profit Advisory mittee for volunteering their time and expertise to developing their remendations,” added Chairman Seidman. “We greatly appreciate their efforts and their willingness to share specific ideas on how financial reporting about not-for-profits can be improved.”

More information about the agenda projects will be available in the ing weeks at www.fasb.. Information about the Not-for-Profit Advisory mittee is available at www.fasb..

About the Financial Aounting Standards Board

Since 1973, the Financial Aounting Standards Board has been the designated anization in the private sector for establishing standards of financial aounting and reporting. Those standards ern the preparation of financial reports and are officially regnized as authoritative by the Securities and Exchange mission and the American Institute of Certified Public Aountants. Such standards are essential to the efficient functioning of the enomy because investors, creditors, auditors, and others rely on credible, transparent, and parable financial information. For more information about the FASB, visit our web at www.fasb..