What Is Sfas 117

This Statement establishes standards for general-purpose external financial statements provided by a not-for-profit organization. Its objective is to enhance the relevance, understandability, and comparability of financial statements issued by those organizations.

What is the meaning of SFAS?

Definition: A statement of financial accounting standards, also called SFAS, is a publication promulgated by FASB that establishes the generally accepted accounting standards in the US.

Who is required to have a statement of functional expenses?

Functional expenses are reported by their functional classification. All nonprofit organizations in the US are now required to report their expenses based on their functional classification and by the natural classification, as per Financial Accounting Standards Board guidelines.