M8- Not for Profit Flashcards
- When are contribution revenues recorded?
a. Reported in the period they are unconditionally promised or received, whichever is earlier
b. Recognition of contribution revenues is not deferred because donations are restricted.
c. Revenues are measured at the Present value (NRV for any contributions expected be received with a year after the unconditional promise was made.
- How are restricted revenues recorded?
a. Recognition of contributions revenue is not deferred because donations are restricted
- How are revenues measured?
a. Revenues are measured at the PV (NRV) for any contributions expected to be received within a year after the unconditional promise was made.
- How are multi-year pledges recorded?
a. Now = revenue
b. Future = donor restricted
- How / when donated resources are considered revenue?
a. They are recognized SOME of the time
b. S- Specialized skills are required and possessed by the donor
c. O- Otherwise needed by the organization
d. M- Measurable
e. E- Easily (at fair value)
- What are examples of types of restrictions?
a. Support of particular operating activity
b. Use in a specified future period
c. The acquisition of long-lived assets
d. Investment for a specified term
e. The creation of a donor restricted endowment that is perpetual in nature
f. Assets, like land or works of art, that are donated with stipulations that they be used for a specified purpose, be preserved and not sold
- If the board designates money a certain way, how does this impact the financial statements?
a. It does not impact the financials
b. Designation by the board of income is neither a chance in restriction nor a change in revenue/expenses
- How are cash flows received from investment income restricted by donor stipulation recorded on the cash flow statement?
a. Financing activities
- How are investments in debt securities measured?
a. FV
- How are brokerage fees handled on contributions of investments in debt-securities?
a. They are not added to the amount contributed.
b. They are ignored because the debt-security it only valued at its FV
- What items are depreciated in NFP?
a. Long-lived assets that are currently being used in operations
- According to FASB, the financial statements of a not-for-profit focus on:
a. The entity as a whole
- On the statement of activities, what section are the expenses deducted from?
net assets without restrictions
- How should a not-for-profit record donated services:
a. As an increase in expenses and increase in contributions from donated services
