NFP Financial Statement Structure Flashcards
The financial statements of a private not-for-profit organization
focus on the organization as a whole and NOT on individual funds
List of Financial Statements
The statement of financial position
the statement of activities and changes in net assets
the statement of cash flows
The statement of financial position
reports all of the assets and liabilities
A - L = Net Assets
Unrestricted Net assets
(Temporarily restricted Net Assets)
(Permanently restricted net assets)
the statement of activities and changes in net assets reports
all revenues, public support, and expenses
the statement of cash flows reports
all of the cash flows (in a manner that is the same as with for-profit organizations so that operating activities, financing activities, and investing activities are reported).
who voted to give authority over the accounting standards for public not-for-profit organizations to the Governmental Accounting Standards Board (GASB)
Financial Accounting Foundation
Pledges are recorded by private not-for-profit organizations but only if
they are viewed as unconditional promises
Once the pledge becomes unconditional, it is reported at the present value of the anticipated future cash flows based on a reasonable interest rate.
Difference between not for profit and for profit recording of investments of Financial Statements.
For Profit = a difference between reporting gains/losses between trading and AFS securities
NFP = 1) All investments are reported at Fair Value
2) Gains/Losses are recorded immediately as increases/decreases in Net Assets
Financial Aid
is a direct reduction to Tuition
A public school which views themselves as solely a single enterprise fund
are allowed to produce a single set of Fund-Based Financial Statements that
1) are appropriate for proprietary fund showing all assets and liabilities and
2) using accrual accounting
Statement of Functional Expenses
are required of all voluntary health and welfare organizations.
Optional for other NFP organizations
