Peer Review

Update on FASB Requirements: Disclosures, Endowments, and Cash Flows—Oh My! - Non Profit News | Nonprofit Quarterly

Material Detail page

Reviewed:: Jul 10, 2019 by Business

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Ratings

Overall Rating:

Content Quality:

Effectiveness:

Ease of Use:

Overview:

The approximately 1 hour webcast with 33 PowerPoint slides discusses ASU 2016-14 which affects nonprofit entities regulated by the FASB. The presentation provides an update as to how presentation and disclosure requirements have changed for the following: 1) the liquidity and availability of resources (begins 10 minutes in) ; 2) net asset classifications (begins 18:15 minutes in), and 3) the analysis of expenses by function (begins 31 minutes in). The recap is based on experiences faced by clients as AS 2016-14 is being implemented. The Investment Returns section (minutes 37:00 – 45:00 ) covers three topics: 1) reporting investment returns, underwater endowments, and the expiration of capital restrictions. The last 15 minutes of the presentation covers the implementation timeline and addresses questions submitted by viewers of the webcast.

Type of Material:

Presentation

Recommended Uses:

Professional development, reference resource. Homework viewing.

Technical Requirements:

Video viewer

Identify Major Learning Goals:

To understand FASB’s new liquidity disclosure for nonprofits and financial statement presentation changes, and the following topics:

Expense allocation disclosure: how much is enough?
Investment expenses: it’s more than you think….
Underwater endowments: how do we know when this applies to our nonprofit?

Target Student Population:

Upper division college nonprofit accounting or public administration course. Nonprofit boards, executive directors, profession accountants, nonprofit donor and funders.

Prerequisite Knowledge or Skills:

A basic understanding on FASB regulated non-profit accounting.

Content Quality

Rating:

Strengths:

The high quality content provided is accurate, current and relevant.
Content is an excellent resource for faculty who teach nonprofit accounting.
Select slides could be reproduced and used as part of class lecture.
The presentation links theory to practice in that the presenters share what they have learned from their clients.
Some slides contain urls that connect to related videos on the material, making it easy for those interested to pursue additional related topics.
Excellent examples are provided for all of the recap subjects. The illustration as to how available net assets can be negative is particularly enlightening.
Fantastic discussion and responses during the last part of the video. Obviously knowledgeable and competent presenters.

Concerns:

Because this presentation is the third in the sequence on AS2016-14, it is not entirely self-contained.
Would like to have had concrete examples supporting the discussion the Investments Returns content, in particular how underwater endowments are presented in the financial statements as well as the expiration of capital restrictions are handled.

Potential Effectiveness as a Teaching Tool

Rating:

Strengths:

Learning objectives are stated, but not for several minutes into the presentation. Although an hour in length users will learn much in a short time.
Excellent source of examples for faculty to use in class or post online.
Presentation is delivered very logically, building on prior concepts and reinforcing concepts progressively.
The scope of the material is appropriate to the allotted time frame for the presentation.
The speakers’ remarks supplemental to the pdf are value-added.

Concerns:

No prerequisite knowledge is identified as it is assumed the participants in the webcast would have an interest or the necessary prior knowledge.
Presentation could be more suscinct and would be more user friendly with a table of contents.

Ease of Use for Both Students and Faculty

Rating:

Strengths:

The webcast is easy to use.
The logical arrangement of content is good.
Examples are clear and easy to follow.
The vocal quality of the speakers is good. Having multiple speakers helps to maintain interest.
Slides are well designed and incorporate graphics.
As accounting webcasts go, this one is very well done and executed.
The end of the session reiterates and clarifies some of the points made earlier.

Concerns:

Depending on the three speakers, the closed captioning presents some translation issues. (example FASB ASU is translated as faz be a su so). The lack of using periods between sentences, and capitalization of first words of sentences is off-putting.
A table of contents that would allow users to jump to content points of interest is not present.
The pace of the presentation is a bit slow and some points are belabored. Sometimes it seems as though it takes presenters at too long to make a point.

Other Issues and Comments:

A host of useful information for faculty and nonprofit professionals can be found from the nonprofit quarterly’s home page. This site is an excellent resource for faculty who teach nonprofit content, particulary in terms of remaining current in the field.
Great questions and information relating the material to auditor going concern situation.

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