Section 1: 30–40%1B4
Notes to the Financial Statements (NFP)
Exam Insight
NFP disclosures under ASU 2016-14 are heavily tested - especially liquidity, availability of resources, and functional expense allocation. The trap: candidates forget that 'availability' is not the same as total assets - it's financial assets minus amounts not available within one year. If you see an NFP question about a 60-day liquidity window, that's exactly what they're testing.
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What AICPA Wants You to Know
- 1Describe the unique NFP disclosures required by ASU 2016-14
- 2Explain the liquidity and availability of resources disclosure
- 3Identify the required content of the functional expense matrix note
- 4Apply the underwater endowment disclosure requirements