There have been a lot of changes in the accounting practices for nonprofits over the past couple of years. It’s not really surprising, because it has been 25 years since the Financial Accounting Standards Board (FASB) has made major updates to generally accepted accounting principles (GAAP) for nonprofits. The recent changes began with Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), which modified the timing and methods nonprofits use to recognize revenues generated through contracts. ASU 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, which goes into effect this year (“for annual financial statements issued for fiscal years beginning after December 15, 2017”), revises several accounting practices. It changes the classification of net assets from unrestricted, temporarily restricted, or permanently restricted to net assets without donor restrictions and net assets with donor restrictions; increases disclosure requirements, including those related to asset liquidity; and requires that expenses be presented by function.