NFP Cash Flow Statements 1 CPE

This course walks the participant through the two versions of a typical Not-For-Profit (NFP) Cash Flow Statement. In addition to learning about the Direct and Indirect methods of preparing the operating section of the cash flow statement.

We also discuss the latest Accounting Standards Update (ASU) to affect NFP cash flow statement preparation ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). Lastly, we present and discuss sample statements along with a discussion of additional reporting and disclosure requirements.

Prerequisites

No advanced preparation or prerequisites are required for this course, but completion of the other courses in this series is recommended.

Learning Objective

• Recognize what accountants are required to include in Not-For-Profit (NFP) Cash Flow Statements prepared by the indirect or direct method
• Identify the differences between the indirect method and direct method of preparing the Cash Flow Statement
• Identify how NFPs should treat donor-restricted gifts that are directed for use in long-lived assets of the NFP

Last updated/reviewed: September 24, 2026