Professional Documents
Culture Documents
Operating Measure
The NAC has determined that users of non-profit financial statements would benefit from a defined intermediate operating measure. Revenues and expenses would be included or excluded from operations based on a mission dimensionwhether resources are from or directed at carrying out an organizations purpose for existence and an availability dimensionwhether resources are available for current period activities reflecting both external limitations and internal actions of the governing board. The operating measure will include all legally available mission-related revenues before reductions for amounts designated by the governing board for use in future periods.
Net Assets
The NAC has tentatively decided to replace the existing net asset classification scheme unrestricted, temporarily restricted or permanently restricted-based on donor stipulations, with a broader classification scheme to convey net assets with donor-imposed restrictions and without donor-imposed restrictions. Further information regarding the nature of the restrictions, including those placed by the NFPs governing board, would be disclosed in the notes to the financial statements.
presentation with the fundamentals of the underlying transactions. For example, interest expense would be classified as a financing activity, and investment income would be classified as an investing activity. As 2014 unfolds, more tentative decisions will be reached and we will keep you up-to-date as they occur.