How to Understand Nonprofit Financial Statements: A Video Overview

Nonprofit financial statements are unique and can be confusing to understand.

The Financial Accounting Standards Board (FASB) provides the accounting standards for nonprofit entities such as ASU 2014-16, Presentation of Financial Statements of Not-for-Profit Entities. Those standards require certain presentation requirements such as a statement of functional expenses and liquidity disclosures.

The best way to understand the not-for-profit financial statement requirements is to take a look at an example.

In the video below, I take you through the statement of financial position, the statement of activity, the statement of functional expenses, the cash flow statement and related disclosures. 

Click the picture below to watch this video now. Whether you are an experienced CPA, an auditor, a nonprofit board member, a nonprofit accountant, or an accounting student, you’ll find this helpful.

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