On January 29th, the Financial Accounting Standards Board (FASB) voted to remove the “Not-for-Profit Financial Reporting: Other Financial Communications” (NFPOFC) project from its agenda. The project intended to “study communications other than financial statements that not-for-profit entities use to tell their financial story.” In a press release, FASB noted that the decision, in conjunction with others, “will allow us to direct our resources to financial reporting issues our stakeholders believe are the most important.”
Though Board members based decisions on different factors, the main reasons for this particular removal stem from the potential that a final recommendation could have been voluntary rather than mandatory and that the project would deal with an issue that goes beyond the scope of traditional Board activities.
The NFPOFC project was one of six projects removed from the FASB agenda. Five projects were removed from the EITF agenda.