FAR 8 Flashcards
how expense is disclosed on non for profit note disclosure?
A non for profit org needs to reports its expenses in statement of activities by their function and nature in the notes to financial statement
what measurement focus and basis of accounting should be used by local goveernment for private purpose trust fund?
Fiduciary fund like private purpose funds are accounted using full accrual and economic resources measurement focus.
How this is treated on Non-for-profit revenue- A notice from a recent graduate that the college is named as a beneficiary of
$10,000 in that graduate’s will.
The “notice” from a recent
graduate that the college is named as a beneficiary is not definite enough for the recording of revenue (the recent graduate may live a long time and may change his or her will at any time)
Which characteristics of service efforts and accomplishments is the
most difficult to report for a governmental entity?
Relevance means the information must bear a logical relationship with the needs for its purpose. It must also be reliable. The achievement of this reporting objective is more difficult to establish than it is to demonstrate consistency (adherence
to the consistent application of GAAP from year to year) or comparability (the use of
GAAP in a manner comparable to other governments). The timeliness objective requires that reports be issued early enough to facilitate timely decisions. The timeliness of
reporting is relatively easy to demonstrate.
Where Cash received of donor imposed to construct the building will be reported on non for profit cashflow stmt?
In Financing activities on stmt of Cashflows of non for profit entity
How dividend income and interested payment and Principal payments are treated on Non for Profit Cashflow stmt.
Dividend income -Operating Activity (same as commercial)
Interest income - Operating Activity (Same as commercial)
Principal Payments - Financing Activities (Same as commercial)
How an Unconditional promises to pay over a period of time are generally classified ?
with donor restrictions as to time until collection.
How contingent upon receiving contribution treated?
Not Classified as Net Assets.
How contribution with time restriction is treated? for example unconditionally contribution for next three year?
With Donor Restrictions
How endowment which remain intact treated?
With Donor Restrictions
