FASB Classification Changes - Are You Ready???

Marc Seleman · August 2017

We created Financial Edge and Financial Edge NXT specifically for you, a demanding non profit that needs first-class accounting software, so it has built-in classification and reporting capabilities to help accommodate changing reporting requirements, including those issued by the FASB in ASU 2016-14.

On August 18, 2016, the FASB issued new standards for not-for-profit organizations on their classification of net assets. This also makes changes in financial statement presentations, liquidity, financial performance, and cash flows.

Financial Edge 7 and Financial Edge NXT’s default values align with FASB’s former net asset classifications of Unrestricted, Temporarily Restricted, and Permanently Restricted. But it’s just a few quick steps to add the new class values to update your funds and accounts to ‘with donor restrictions’ and ‘without donor restrictions’--We expect these changes, for most clients, can be made quickly and easily, with no software updates, purchases, or other services required.

We’ve created this Knowledgebase article that goes through the step-by-step process to help you prepare for your fiscal years starting after 12/15/2017

Want more information on these changes?

No problem! Watch our webinar, “Preparing Your Organization for the New FASB Reporting Model” with Susan Weiss Budak, consultant, author, and previous Project Manager at FASB. Sue reviews the main provision of this update and how your accounting office can prepare for changes in the reporting of net asset classes, decisions on how expense categories are allocated, and the effects on underwater endowments.

How can Blackbaud help?

For some organizations, changes laid out in ASU 2016-14 may require additional considerations. Prefer a deep-dive on the specific changes to your organization? Blackbaud’s Professional Services team can provide complete guidance and assistance through this process with one of our highly trained consultants to review and update your:

Class Code Table
Fund Records
Account Codes
Account Strings
Distribution Tables

While Blackbaud Professional Services cannot act in an advisory capacity regarding the guidance, we can provide the technical expertise to help you be successful implementing these changes, using Financial Edge and Financial Edge NXT. If you have been working with an FE Consultant feel free to reach out to them or just contact your Account Manager and mention you need to talk to our consulting team about the FASB changes to get this scheduled!

For additional details, check out the new guidelines on FASB.org

Cheryl Mero · April 2018

Has anyone made these changes? What effect does changing the class on Fund records, Account Codes, and Accout Records have on current year Financial Reports in FE?

FASB Classification Changes - Are You Ready???

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