Direct cash flow method – Tentative decisions from FASB about NPO reporting

On 10-23-13, FASB tentatively decided to require NPOs to use the direct method when preparing a statement of cash flow.

You can see the discussion here.

My summary of some other minor changes:

  • Donor contributions with restrictions for long-term assets would be an operating cash flow instead of financing.
  • Outflows to meet those restrictions would likewise be operating instead of financing.
  • Investment income would be investing cash flow instead of operating.

These items will show up in a future ED. Lots of other issues are on the table for future discussion.

(Thanks to Bill for the tip.)

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