F8/M6 NFP Transfers of Assets

Question 1

Not financially interrelated without variance power (NFP acts as agent)

Answer 1

Dr: Assets (FV)
Cr: Refundable Advance Liability

Question 2

Not Financially Interrelated with variance power

• Expensed when distributed

Answer 2

Dr: Assets (FV)
Cr: Contributions

Question 3

Financially interrelated

Answer 3

Dr: Assets (FV)
Cr: Contributions

Question 4

Beneficiary accounting; Beneficiaries recognize right to asset unless recipient has variance power

Answer 4

If the Recipient has variance power, there is no JE for the Beneficiary

Question 5

JE for Beneficiary (Recipient no Variance power)

Answer 5

Dr: Receivable
Cr: Contribution revenue

Question 6

Beneficiary (Financially interrelated Recipient)

Answer 6

Dr: Interest in recipient net assets
Cr: Change in Interest in recipient net
assets

Question 7

Losses on permanently restricted NA first reduce Temporarily Restricted NA, then Unrestricted NA

Answer 7

True

Question 8

In order to be considered financially interrelated,

Answer 8

One is able to influence the operating and financial decisions of the other and has an ongoing economic interest in the other