Not For Profits Flashcards
(15 cards)
What financial statements are required
Statement of Financial Position (balance sheet)
Statement of Activities (Income statement)
Statement of Cash Flows
What amount of net assets should be released from restriction?
Only the amount used to satisfy will be released from restriction
not for profit entities are defined by FASB as:
revenue comes from contributions, their operating purpose does not include a profit, their ownership interests are unlike business enterprises
4 types of general NFP
health care, educational, voluntary health and welfare, or other private nongovernmental
components of statement of financial position
assets, liabilities, and net assets
net assets without donor restrictions
available to finance general operations of a NFP
changes in accounting estimate
do not restate prior years, follow prospective
changes in accounting principle
retrospective approach: adjust beg RE net of tax
changes in accounting entity
retrospective and full disclosure
error corrections
prior period adjustments
when change in accounting principle is inseparable from a change in estimate
use a change in estimate
how to treat a change from cash to accrual method
cash is not considered GAAP, so considered a change in accounting error - so do a prior period adjustment bc of the error correction
split interest agreements
recognize contributions of: fv of contribution - pv of est annuity payments
pernament funds
principle cannot be used
special revenue funds
evrything can be used including principle and interest
