F9 Flashcards
J/E to record NFP promises
DR: Pledge receivable
CR: Allowance for doubtful
CR: Contribution rev
How is donated property accounted for under NFP?
is recorded at FV and is recognized as support
Program servces
Relate to functional expenses directly related to the mission of the organization
Support Services:
summarize the functional expenses related to general and admin, membership development and fund-raising
Fundraising
Inducing potential donors to contribute to the entity
Membership Activities
involve seeking prospective members, ensuring current member satisfaction, etc
Investing Activities from NFP in Statement of Cash Flows
should include proceeds from the sale of long lived assets or insurance proceeds associated with the loss of long lived assets
How should a NFP report its expenses in the statement of activities?
By their functional classification (program classification, supporting activities, fund-raising, etc. Helps donors and others in assessing an organization’s service efforts
J/E to record the satisfaction of temp donor restrictions and issuance of scholarships:
J/E to record satisfaction of donor restricted contributions used for scholarships
- DR: Satisf. of program restrictions -temp restricted
CR: Satisf. of program restrictions, unrestricted - DR: Scholarship expense
CR: Tuition Revenue
J/E for the donated services to repair the roof
DR: Expense
CR: Contributions
Where are donations of medicines for NFP Hospitals?
Included as other revenue at their FV of the medicine since the medicine constitutes part of the ongoing major operation of the hospital
What does the net assets balance for a university equal?
Assets- Liabilities (including deferred rev)
Required Govt FS
~Managements Discussion and Analysis (RSI)
~Govt-Wide FS (Statement of Net Position and Activities, No CF)
~Fund FS (major funds shown individually)
~Nots to FS
~RSI (Includes Pension, Budget, Infrastructure)
~Other Supp Info
Optional Reporting ~ CAFR
Comprehensive Annual Report
~Into Section
~Basic FS and Required Supp Info
~Statistical Section
What are primary Government Entities?
~State Governments
~General Purpose Local Govts (city or a county)
~Special purpose local govts (eg hospital authority or a school district) that meet the following criteria
~Separately-elected governing body
~ Legally separate
~Fiscally independent of other state or local govt
Component Unit
is usually an organization for which the elected officials of the primary govt are financially accountable.
Blended Presentation
Component units are so intertwined with the primary govt that they are, in substance, the same as the primary govt
Discrete Presentation
Separate Presentation – is used when the criteria for blended are not met
Required FS for NFP
~Statement of Financial Position (like BS)
~Statement of Activities (like IS)
~Statement of CF
~Statement of Functional Expenses (required by Vol Health and Welfare)
What are the components of Statement of Financial Position
~Assets
~Liabilities
~Net Assets (equity) (*this is not called funds, fund bal, or RE)
What are the Classifications of Net Assets?
P= Permanently Restricted Net Assets = limited by donor-imposed stipulations that neither expire by passage of time nor can be fulfilled or otherwise removed by actions of the organization
U= Unrestricted Net Assets = *Internal board-designated funds are considered unrestricted
T= Temporary Restricted Net Assets = The donor-imposed stipulations either expire by passage of time or can be fulfilled and removed by actions of the organizations
NFP - what happens with Contributions with donor-imposed restrictions?
-Contributions with donor-imposed restrictions are recorded as restricted rev in the period in which they are received. Increase temp or perm restricted net assets
NFP- What happens when donor restrictions satisfied?
a reclassification is reported on the statement of activities. Reclassification are items that simultaneously increase one net asset class and decrease another
NFP- What happens when donor-imposed restrictions are not met in the same period they are received?
- Donor-imposed restrictions that are not met in same period they are received may be recorded as unrestricted support (contribution rev), provided that the org discloses and consistently applies this acct policy