NFPs Flashcards
1
Q
If for example, a NFP is notified that an invoice is being cancelled after the NFP purchased the item, how should the NFP record the donation?
A
Donated medicines, linen, office supplies, and other materials which normally would be purchased by a hospital should be recorded at FMV and reported as other operating revenue. No such amount should be deducted from operating expenses.
2
Q
How should a NFP classify gains or losses on investments purchased with permanently restricted assets?
A
Unless explicitly restricted by donor or law, gains and losses should be reported in the statement of activities as increases or decreases in net assets with donor restrictions.
