Why is it important that AccuNet understands FASB 117?
FASB Standard No. 117 for non-profits is the rulebook for non-profit financial reporting.
FASB is short for Financial Accounting Standards Board and this organization writes the rules for private and Non-Profit organizations in the US. The primary purpose of FASB is to establish and improve GAAP (Generally Accepted Accounting Principles).
FASB is recognized by the SEC as the accounting standard and is recognized as authoritative by the Boards of Accountancy and the AICPA. If you follow these standards in financial reporting, your organization can be evaluated by auditors, investors, donors, government and others who want to evaluate your stewardship with a higher degree of confidence.
At AccuNet, we use these standards in our design and consulting on financial system implementations so your system best supports current FASB standards.
The benefits of a well thought out design with FASB standards are:
- Easier report creation to support audits, compliance and financial standards.
- Credibility with board, donors, government, supporters, and auditors.
- Influences good business processes and compliance.
More information on FASB can be found at www.fasb.org. We encourage all persons responsible for non-profit reporting to sign up for the FASB newsletter that allows you to customize the information you wish to receive in the “STAY CONNECTED” page of their web site. You can also buy publications like the Standards No. 117 that we keep on our bookshelves for reference on Non-Profit financial reporting.
A competitor for GAAP is IFRS, which is the international standard-setting body of the International Accounting Standards Board. Especially in publicly-traded companies IRFS is growing in adoption. Non-profits with an international presence will want to educate themselves on their standards at www.ifrs.org.
In our increasingly global world, the influence of IFRS is growing. AccuNet helps with a design that satisfies both standards and, based on your organization’s mission, prepare for the future.