An FASB alert said that the examples were prepared to assist not-for-profit organizations in their consideration of the proposed standard by showing how a not-for-profit organization would apply the retrospective application provisions of the proposal at initial implementation and how such an entity would report actuarial gains or losses and prior service costs or credits in a statement of activities.
According to the FASB, examples have been provided for:
- A not-for-profit organization that presents, either by requirement or by choice, an intermediate measure of operations (performance indicator) that is functionally equivalent to income from continuing operations of a for-profit entity
- A not-for-profit organization that chooses to present an intermediate measure of operations that is not functionally equivalent to income from continuing operations of a for-profit entity
- A not-for-profit organization that chooses not to present an intermediate measure of operations.
Other entities that do not report other comprehensive income under FASB Statement No. 130, Reporting Comprehensive Income, may also find these examples useful in evaluating and commenting on the proposal, the FASB said.
The examples, posted on the FASB’s Web site on May 2, are here .
« Nestle Shareholders Reject Pension Fund Dual Exec Prohibition