NEW YORK, Aug. 28, 2015 /PRNewswire/ -- Grassi & Co.'s Not-for-Profit ("NFP") Practice Group -- led by David M. Rottkamp, CPA, Nina Bahazhevska, CPA and Jennifer Mosera -- has issued a comment letter on the Financial Accounting Standards Boards' ("the Board") April 22, 2015 Proposed Accounting Standard Update ("ASU") on Not-for-Profit Entities' (Topic 958) and Health Care Entities' (Topic 954) Presentation of Financial Statements of Not-for-Profit Entities. Overall, Grassi & Co. stands in support of the proposal, but has some concerns that the proposed improvements in certain areas will increase financial reporting complexities, cause confusion and create inconsistencies within the Not-for-Profit industry.
"This is the first proposed major change in the NFP sector in over 20 years," stated David M. Rottkamp, Grassi & Co. Partner and NFP Practice Leader. "As leaders in the NFP Industry, Grassi & Co. felt it was our responsibility to provide comments and contribute to improving the financial reporting process for our clients and all NFP organizations."
The Proposed ASU on Not-for-Profit Entities' (Topic 958) and Health Care Entities' (Topic 954) Presentation of Financial Statements of Not-for-Profit Entities ("Proposed ASU") was issued to propose improvements to existing standards for financial statement presentation by NFP organizations. The main objectives of the Proposed ASU are to increase the understandability, comparability and usefulness of the information presented in financial statements and notes to provide better information to donors, creditors and other users of financial statements.
Grassi & Co.'s Feedback to FASB
In most respects, Grassi & Co. is in support of the Proposed ASU and believes that the Board's intent to improve financial reporting and disclosure for NFPs is warranted. The Firm also agrees that the changes to the net assets classes and many of the disclosure requirements will improve the understandability and usefulness of the information provided in the financial statements.
However, Grassi & Co. offered FASB a number of recommendations that will help eliminate confusion and financial reporting inconsistencies within the industry. To review Grassi & Co.'s full comment letter to FASB, please click here.
Driving an Industry Response
The Proposed ASU has resulted in FASB receiving a number of comment letters in addition to Grassi & Co.'s, which was submitted on August 20, 2015. Among these include comments issued by the New York State Society of CPAs (NYSSCPA) Not-for-Profit and Financial Accounting Standards Committees. As the former Chairman of the Not-for-Profit Committee, Grassi & Co.'s David M. Rottkamp, CPA, was a primary contributor to the State Society's response. To access the complete comment letter issued by the NYSSCPA, click here.
About Grassi & Co.: Grassi & Co. is a premier professional service organization specializing in accounting, auditing, tax, technology, and business consulting services. Grassi & Co. has offices in Manhattan, Long Island and Rockland County, NY as well as internationally through its association with Moore Stephens International.
SOURCE Grassi & Co.