Flashcards in F9: Not-For-Profit Organizations Continued Deck #2 Deck (40)
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1
Resource inflows for NFPs are classified as either _____ or ______.
Revenue or other support
2
Revenues represent what?
Exchange transactions (earns resources in exchange for services performed)
3
Other support represent what?
Operating income that is donated
4
Contribution definition
Voluntary transfer of cash or assets
5
Cash Contributions are recorded as revenues when?
-In period they are received
-Fair Value
6
Unconditional Promises AKA what?
Pledges
7
Unconditional Promises are recorded as revenues when?
-When promise is made
-Fair Value
8
An unconditional promise may be:
Written or verbal
9
Conditional Promises are recorded as revenues when?
When the conditions have been met
10
Multi-year pledges are recorded at what?
NPV at the date the pledge is made
11
How are Multi-Year Pledges recorded now and in the future?
Now = revenue
Future pledges = temporary restricted revenue
12
Split Interest Agreements definition
When NFO receives benefits that are shared with other beneficiaries
13
Split Interest Contributions should be measured at what and displayed how?
-Measured at FV at date of acquisition
-Displayed as temporarily restricted
14
Contributions of Donated Services are recognized SOME of the time. SOME stands for what?
S- specialized skills are required and possessed by the donor
O- otherwise needed by the organization
M- measurable
E- easily (at fair value)
15
Donated collection items are not required to be recoded if ALL criteria are met
(Same as governmental reporting)
-Held for public viewing
-Collection is cared for
-Organization has a policy
16
Unconditional promises to contribution in the future are reported as what?
Restricted support at PV
17
Agency transactions consist of what?
Resources received by the NFP over which the NFP has little or no discretion or variance power
18
Gifts in-kind definition
-Non-cash contributions to a NFP
-Measured at FV
19
Exchange transactions definition
Reciprocal transfers in which each party receives and sacrifices something of equal value
20
Calculation for exchange transaction contributions:
Amount transferred
- FV dues/purchases
= Contribution revenue
21
Recipient Accounting as an agent: asset treatment if no variance power
-Fair value
-Recognized as a liability
22
Recipient Accounting as an agent: asset treatment if granted variance power
-Fair value
-Recognized as contribution revenue when received and expensed when distributed to the beneficiary
23
Recipient Accounting if financially interrelated and granted variance power
-Fair value
-Recognized as contribution revenue when received and expensed when distributed to the beneficiary
24
Beneficiary Accounting with an agent: recognition rule
Recognize their rights to assets held by others UNLESS recipient has variance power
25
Gains & losses on investments are reported in what statement?
Statement of Activities
26
How are gains & losses on investments reported?
As increases/decreases in unrestricted net assets UNLESS restricted
27
An endowment fund is used to account for what?
Donated assets
28
3 types of endowment funds
1- Permanent endowment
2- Term endowment
3- Quasi-endowment
29
In a permanent endowment, corpus (principal) is what?
NOT allowed to be spent
30
