FAR 1B4 Notes Flashcards
🔄 How should an NFP record a transaction where it receives a contribution and gives an asset in return?
✅ Record the received contribution
✅ Record the asset given as sales revenue
✅ Deduct the sales revenue from the contribution amount
📑 What must NFPs disclose regarding donor-restricted net assets?
✅ Nature, type, and amount of different restrictions
✅ How and when (if ever) the restricted net assets can be used
🏦 What must NFPs disclose about board-designated net assets?
✅ Amounts and purposes of board designations
✅ Only for net assets without donor restrictions
📜 What must NFPs disclose about self-imposed limits on resource use?
✅ Any governing board actions that create restrictions
📊 What quantitative disclosures must NFPs make regarding financial assets?
✅ Availability of financial assets to meet cash needs for general expenditures within one year
💧 How must NFPs disclose financial asset liquidity?
✅ Quantitative disclosure of the availability of financial assets due to their nature
🚫 What external limits on financial assets must NFPs disclose?
✅ Restrictions imposed by donors
🔒 What internal limitations on financial assets must NFPs disclose?
✅ Any self-imposed restrictions by the organization
🔍 When is it unnecessary to disclose something in the notes?
✅ If the same information is disclosed on the face of the financial statements
🤝 What disclosures are required for joint costs in an NFP?
✅ Types of activities for which joint costs were incurred
✅ A statement that such costs have been allocated
✅ Total amount allocated and the portion allocated to each functional expense category
📌 What joint cost disclosures are optional but allowed?
✅ The amount of joint costs for each kind of joint activity
🎯 What donor restrictions must be disclosed in an NFP?
✅ Acquisition of long-lived assets
✅ Investment for a specified term
✅ Support for a particular operating activity
📊 Where must NFPs disclose an analysis of expenses?
✅ In the notes or the financial statements (FS)
✅ Must include both functional and natural classifications
📑 What is reported as supplemental information (not audited) in an NFP?
✅ Investing and financing activities that affect assets or liabilities but do not result in cash receipts or cash payments
✅ Examples: Acquisition of assets for stock, cash paid for interest and taxes
📉 What must be disclosed about underwater endowment funds?
✅ Aggregate fair value of underwater endowment funds
✅ Total original endowment gifts or levels required to be maintained by donor stipulation or law
✅ The NFP’s policy and actions taken regarding appropriation of underwater endowment funds