NFP SFCPA Flashcards
What are some examples of financing activities in a Not for Profit cash flows?
Examples are purchasing property investments and securities
What are some examples of support expenses?
Support services are services that support NFP mission
Ex- Management and general
- Fundraising
- membership development
- publicity and conducting campaigns
Which financial statement in the NFP allows “reclassification”?
The statement of activities
Can interest expense be reported as current asset on the statement of financial position?
Interest expense
Rules to calc the statement of cash flows if the “Net Assets” not reported and we have operating activities
We start off with operating income 119,000
We SUBTRACT Depreciation since noncash item we are working backwards
For Assets if it says an assets has increased we ADD and if it says an assets is decreased we SUBTRACT
For liability we do the opposite of the increase or decrease like we do for assets for for profit entity
If a NFP receives a contribution of historial artifacts when it’s not required capitalized or recognize as revenue?
When the artifacts is acquired other items for collections bc they are used to be views by the public rather to make money
How to calc the correction of depreciation expense for equipment that had an error?
We just need to obtain the original cost 650,000 / 5 years = 130,000 which is depreciation expense
How to adjust prepaid rent error found on the NFP statement?
To adjust prepaid rent we needed to first restate the prior periods statements rent
300,000 / 3 years x 2 remaining years of 2 = 200,000
What are gov funds usually used for?
Tax Collections, construction, and public services
What are propriertary funds used for?
Used for operated like business such as utilies
What are fidicary funds used for?
resources held for others
10-K Part 2
ITEM 7 - MD&A
ITEMS 7A - Market Risk Disclosure
10-Q Part 1
Items 1 - Financial Statement
Items 2 - MD&A of Financial Conditional and Operations
Items 3 - Market Risk Disclosures
10-K Filing
- LARGE ACCELERATED FILE WOULD BE 60 DAYS END OF FISCAL YEAR
- ACCELERATED FILER NEED TO BE FIKLED BY THE END OF 75 DAYS END OF FISCAL YEAR
- NON - ACCELERATED FILERS WOULD BE 90 DAYS END FISCAL YEAR
ORDER FOR 10Q PART 1,2,& 3
FINANCIAL STATEMENT
MD&A DISCLOSURES
MARKET RISKS
What adjustments are required to be made when adjusting convertible bonds for DEPS?.
STEP 1 - Add back the after tax interest expense and add the adjustment to Net Income
STEP 2 - Add the additional shares from converting shares
ORDER FOR THE 10K ITEMS 7, 7A & 8
FINANCIAL STATEMENTS
MD&A DISCLOSURES
FINANCIAL STATEMENTS
Calc, the Diluted Earnings per share?
DEPS = ADJUSTED NET INCOME / COMMON STOCK + CONVERTED SHARES
How to convert shares to common stock shares outstanding for DEPS?
So the preferred shares are given for examples 40,000 then it would say on the problem that each preferred shares are convertible into 3 shares of common stock
40,000 x 3 = 120,000
How to calc the preferred shares if it’s not given?
Look for the issued 500,000 / 1000 bonds = 500 x 40 = 20,000
What happens to convertible preferred stock when calc the diluted EPS?
Preferred Stock dividends are added back to net income
The new common shares are added to the denominator
What happens to convertible Bonds when calc the diluted EPS?
After tax expense from convertible bonds is added back to NI
Additional shares from the bond conversion are added to the common shares outstanding
For external reporting purpose the NFP reporting model
permits disaggregation of information by fund groups
How are Insurance proceeding are reported for the statement of cash flows?
Reported on the cash flows on the investing section
