by SST Partner, Bill Sims, CPA
As discussed in this blog previously there have been many changes under the new accounting standards for nonprofit organizations (NPO) that are effective for 2018. One new change to consider is a disclosure about liquidity and availability of resources.
For this area, there are two key components that NPOs are required to provide in their financial statements (assuming they comport to be in accordance with U.S. GAAP). One is qualitative information and the other is quantitative information.
Qualitative information encompasses how the NPO manages both its liquid, available resources and the associated liquidity risk. (This information will presumably be reported in the notes to the financial statements.)
Quantitative information communicates the availability of financial assets, at the balance sheet date, to meet cash needs for general expenditures for the upcoming year. (This information can be presented in either the notes or on the face of the financial statements.)
If you have questions on the new accounting standards and how they may affect your organization contact Salmon Sims Thomas, our team has the answers you need!