ACCT 434- Mod 10 (Pereversoff) Flashcards
Can a private sector NFP use IFRS?
Yes, sometimes they opt for IFRS, but they don’t have to.
They have to be 100% IFRS or 100% NFP accounting standards
Who are the main users of the financial statements of a NFP?
Members
Contributors
Creditors
Is OCI used in NFP accounting?
No, OCI does not exist in NFP accounting
What is the statement of operations?
It’s basically the income statement for an NFP. They just use different terminology and don’t call the end result Net Income
What term is used instead of “Net Income” for NFP’s?
Changes in Fund balances/Net assets
What are the main types of non-reciprocal contributions?
Restricted contributions
Endowment contributions
Unrestricted contributions
What are restricted contributions?
Contributions that are subject to externally imposed restrictions on how the funds can be used or spent
What are endowment contributions?
The donor has stipulated that the donation cannot be spent. It must be maintained permanently.
What are unrestricted contributions?
Donations that can be used for any purpose
What are Contributions Receivable?
A future cash flow or receipt of assets that you are expecting based on a pledge
What is a Bequest?
Donation made in a will (from a deceased person)
When do we record a pledge?
Only if we have historical results that allow us to estimate how likely we are to collect
When would you make an entry for volunteer services?
Only if you would normally pay for the service.
EX: if an accountant donates his time to do the books you would record it because you would have to pay for the service otherwise.
What is fund accounting?
Separating your entries into your different funds
OF
CF
EF
What does OF Stand for?
Operating Fund
