FAR 9 Flashcards
What amount of revenue is recognized for non profit?
Generally, the difference between the fair value of the purchases and the amount transferred is classified as contribution.
Cash contributions and unconditional pledges are recognized as contribution revenue in the year in which?
The cash or pledge is received.
How do you record a pledge receivable?
Dr. Pledge Receivable
Cr. Allowance for doubtful accounts
Cr. Contribution revenue
Losses on investments of a donor-restricted endowment fund (permanently restricted net assets for external reporting purposes) serve to
reduce temporarily restricted net assets to the extent that donor-imposed temporary restrictions on net appreciation (cumulative losses minus gains) of the fund have not been met before the loss occurs. Any remaining loss reduces unrestricted net assets.
Not-for-profit corporations are required to produce the following statements:
Statement of financial position
Statement of activities
Statement of cash flows
Board discrectionary funds and contributed services are?
Unrestricted.
A promise to contribute is?
Restricted until conditions (collection) or eligibility requirements (date, etc.) have been satisfied.
Not for profit organizations are considered financially interrelated organizations in the e vent that one of the organizations:
Is both able to influence the operating and financial decisions of the other AND has an ongoing economic interest in the net assets of others.
When resources have been provided in exchange for research results, what type of transaction is this and what assets does it increase?
Unrestricted net assets. It is not considered a contribution when resources have been provided in exchange for research.
What are the two expense categories of NFP?
Program services and support services.
What are program service expense?
Functional expenses directly related to the mission of the organization.
What are support services
Support expenses related to 1) G&A 2) Cost of membership development 3) fundraising.
A contribution is defined as?
An unconditional transfer of cash or assets (collection is certain) to a new owner (title passes) in a manner which is voluntary (the donor is under no obligation to donate) and is non-reciprocal (donor gets nothing in exchange)
What is required for reporting of expenses by all not-for-profit organizations?
Functional classification in the statement of activities or notes to the financial statements.
How are restricted cash contributions to acquire a property reported in the cash flow?
Financing activities because the restriction is to acquire a property, not general operations.
What is the j/e to record the satisfaction of temporary donor restrictions and issuance of scholarships?
Dr. Satisfaction of programs,temp restricted
Cr. Satisfaction of program restrictions, unrestricted
How do you record satisfaction of donor restricted contributions used for scholarships?
Dr. Scholarship expense
Cr. Tuition revenues
Donated services are reported as an increase in expense and contributions when?
1) if the services create or enhance non financial assets
2) they require specialized skills, which would otherwise be paid for.
A NFP prepares a Statement of Activities that presents changes in?
1) Unrestricted net assets
2) temporary restricted net assets
3) permanently restricted net assets
The three functional classifications for expenses incurred by a non profit org are?
1) Program services
2) Management and general costs
3) Fund raising and other supporting services
What would normally be included in other operating revenues of a hospital?
Revenue from educational programs.
How are unrestricted gifts classified?
Non-operating revenues.
In a statement of activities, depreciation expense should?
be included as an element of expense.
NFP reporting guidance in FASB ASC 958 primariliy focuses on?
Basic information for the organization as a whole.
