Financial Reporting for NFPs

Question 1

What are the three statements required for all NFPs? The one additional for VHWOs?

Answer 1

• Statement of Financial Position
• Statement of Activity
• Statement of Cash Flows

-Statement of Functional Expenses

Question 2

How does NFP Statement of Financial Position classify Net Assets?

Answer 2

• Unrestricted
• Temporarily Restricted (Purpose Type & Time)
• Permanently Restricted

Question 3

What’s the purpose of NFP Statement of Activity?

Answer 3

-Show Change in Net Assets for each of 3 classifications

Question 4

What are the four principal sections of the Statement of Activity?

Answer 4

• Revenues and Gains
• Net Assets Released from Restrictions
• Expenses and Losses
• Changes in Net Assets and Reconciliation of Beg + End

Question 5

Where is Contribution Revenue reported in Statement of Activity? Exchange Revenue?

Answer 5

• Under any of three classifications

- Only under Unrestricted Net Assets

Question 6

Where are all NFP expenses incurred from?

Answer 6

-Unrestricted Net Assets

Question 7

How must NFP expenses be reported?

Answer 7

-Using functional classification as either Programming Services or Supporting Services

Question 8

What two line items are Supporting Services reported on?

Answer 8

• Management and General

- Fund Raising

Question 9

What is the bottom line of the Statement of Activity?

Answer 9

-Change in Net Assets