Chapter 9: NFP Accounting Flashcards
What type of accounting does NFP use?
What type of measurement focus does NFP use?
What body governs NFP?
Full accrual accounting
economic measurement focus
FASB
What are the required FS for a NFP?
Which FS is required for voluntary health and welfare organizations?
Financial Position (BS)
Statement of Activities (IS)
Cash Flows
Statement of Functional Expenses
What are the 3 components of net assets under NFP?
Unrestricted
Temporarily Restricted
Permanently Restricted
What makes up the unrestricted, temporarily restricted, and permanently restricted net assets?
Unrestricted: internal board designated funds
Temporary: donor imposed restriction that either expire or go away with organizations actions; promise from contributor
Permanent: donor imposed restriction that neither expires or go away with action from organization
When are the following recognized as revenue:
cash contribution
unconditional pledges
conditional promises
multi-year pledges
period received at FV (date of gift)
when promise made
when earned
PV at date pledge is made as pledge receivable
What are specialized support transactions?
contributions that are not cash
When are donated serviced recorded?
create or enhance a non-financial asset OR
"SOME" Specialized skill that otherwise would be needed that is Measured Easily
What is the contribution revenue formula for exchange transactions?
+ amount transferred
- FV of dues/purchase
= contribution revenue
At what value is donated property recorded?
How is donated property recognized as?
FMV
recognized as support
What are the 4 categories of NFP entities?
hospitals/healthcare
colleges/universities
voluntary health and welfare organizations
Other (religious)
Do NFP entities have the ability to impose taxes?
NO
What are program services?
What are some examples related to universities, hospitals, day care, etc?
activities related to purpose of organization
Universities: education and research
Hospitals: patient care
Day care: child care
What are support services?
What are some examples?
Anything not classified as supporting
fund raising, admin, membership development
What is included in the financing activities of the NFP cash flows?
long term purposes, borrowing, debt related activities
What is included in the investing activities of the NFP cash flows?
artwork, insurance proceeds, equipment
