The FASB's Not-for-Profit Advisory Committee just wrapped up its latest meeting, touching on everything from standardized operating measures to software cost accounting. Here's what you need to know.
🏥 Sector Impact: Health care entities, public-private partnerships
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🚀 What's Next: More detailed meeting minutes to be published on the FASB website
📝 The Meeting Rundown
On March 20, 2025, the FASB's Not-for-Profit Advisory Committee held its semiannual meeting. The Committee discussed several key topics such as standardized NFP operating measures, liquidity disclosures, and improvements to the statement of cash flows. They also touched on excluding NFPs with conduit debt from certain public entity definitions in GAAP.
🔍 Key Discussions
Leases (Topic 842): The new lease standards have made NFPs' leasing activities more transparent, though they came with significant initial implementation costs.
Credit Losses (Topic 606): There's general support for the proposed amendments, with Committee members suggesting that all NFP entities should be included.
Software Costs: The Committee backs modernizing the accounting for software costs, noting that the new amendments would make the guidance more relevant.
📈 Emerging Issues
During the closed session, members highlighted inconsistencies between FASB and GASB guidance, especially around leases and subscription-based IT arrangements. They also mentioned the need for better disaggregation of investment returns and improvements to the cash flow statement.
