FASB recently completed a project named Financial Statements of Not-For-Profit Entities. (ASU 2016-14 issued 8/18/16).

1.Write a summary of the new reporting requirement for net assets (covered in the textbook) and compare

that with the previous reporting requirement for net assets?

2.Why did the FASB change net asset reporting? In other words, how will the changes improve financial

reporting for NFP organizations?

3. In addition to the net asset classification component of the project, there were other items addressed in

this new guidance. Please explain what these other changes are?

4. After having performed this research, what is your opinion? Do you believe the changes will in fact

improve financial reporting? Explain the rationale for the position you take?