Annual Report 2023

No t e s t o Co n s o l i d a t e d F i n a n c i a l S t a t eme n t s J u n e 3 0 , 2 0 2 3 a n d 2 0 2 2 after December 15, 2021, though earlier application is permitted. The university adopted ASU 2021-05 in fiscal 2022, resulting in no material impact to the consolidated financial statements. In September 2020, the FASB issued ASU 2020-07, Not-for-Profit Entities (NFP) (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets, to increase the transparency about the measurement of contributed nonfinancial assets as well as the amount of those contributions used in an NFP’s programs and other activities. The guidance requires NFP’s to present contributed nonfinancial assets as a separate line item in the statement of activities, apart from cash and other financial contributions, as well as disclosure of the type of asset, whether the asset was monetized or utilized in the reporting period, donor-imposed restrictions, valuation techniques and the principal market used to determine fair value. ASU 2020-07 is to be applied on a retrospective basis for annual periods beginning after June 15, 2021. The university adopted ASU 2020-07 in fiscal 2022, resulting in no material impact to the consolidated financial statements (see Contributions section of this Note 2). In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires timelier recording of credit losses on financial instruments by effectively replacing the current incurred loss methodology with one that reflects expected losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2022. The university does not expect the new guidance to have a material impact on its consolidated financial statements. 23

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