In November of 2011 the FASB announced two new

projects #6822
In November of 2011, the FASB announced two new projects related to financial reporting of
not-for profit organizations. One of the projects was a research project that was subsequently
dropped from the agenda; as a result, the standard-setting project was renamed "Financial
Statements of Not-For-Profit Entities." As this textbook goes to press, the FASB has tentatively
scheduled the release of an exposure draft in the second half of 2014. The board has reached
tentative conclusions about several NFP issues, including reporting of net assets. The board
proposes that net assets be reported in two net asset categories-net assets with donor-imposed
restrictions and net assets without donor-imposed restrictions - instead of the currently required
three net asset categories of unrestricted net assets, temporarily restricted net assets, and
permanently restricted net assets.Requireda. Research the current status of the FASB project.
Write a summary of the current reporting requirement for net assets and compare that with the
proposed reporting requirement for net assets.b. Why is the FASB proposing this change in net
asset reporting? In other words, how will the proposed changes improve financial reporting for
NFP organizations?c. In addition to the net asset classification component of the project, there
was one other overall objective. Identify the objective and discuss what, if any, proposals are
being considered as part of this objective.View Solution:
In November of 2011 the FASB announced two new projects

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