The Financial Accounting Standards Board has issued a revised exposure draft of a proposed standard on earnings per share, along with a staff position on endowments for nonprofit organizations.

The EPS proposal seeks to simplify the method of calculating EPS while providing for the convergence of U.S. and international accounting standards, reconciling FASB Statement 128 with International Accounting Standard 33.

"In addition to improving financial reporting, the proposed amendment to Statement 128 is an important step in the international convergence process," said FASB practice fellow Sheri Wyatt in a statement. "By eliminating the differences between Statement 128 and IAS 33, the proposed amendment will enhance the comparability of EPS reported under U.S. GAAP and IFRS."

The staff position on endowments for not-for-profit organizations relates to the net asset classification of funds subject to the Uniform Prudent Management of Institutional Funds Act, offering enhanced disclosures of endowment funds.

The FSP provides guidance on classifying the net assets (equity) associated with donor-restricted endowment funds held by organizations that are subject to an enacted version of UPMIFA, which serves as a model act for states to modernize their laws governing donor-restricted endowment funds.  Approximately 20 states have already done so, and many more are expected to do so over the next few years.

FSP FAS 117-1 also requires additional disclosures about endowments (both donor-restricted funds and board-designated funds) for all organizations, including those that are not yet subject to an enacted version of UPMIF.

The provisions of the FSP are effective for fiscal years ending after Dec. 15, 2008. Early application is permitted, as long as the organization has not previously issued annual financial statements for that fiscal year. For more information, visit

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access