Set 8 FR 36 NFP Flashcards
What framework do NFP follow?
ASPE or IFRS, Or ASNPO.
4 statements in NFP
SFP, Statement of ops, statement of changes in net assets or funds balances and statement of cash flows
Two types of reporting
aggregate or fund
4 types of funds
general/restricted/capital asset/endowment
What is endowment fund?
minimum balance must be maintained. generally interest is what can be spent.
Two methods of accounting
Deferral / restricted fund
Which method must fund accounting be used?
restricted fund. optional with deferral
When are unrestricted funds recognized in revenue?
- amount to receive can be reliably estimated
- collection reasonably assured
Restricted funds - deferral method - RR?
when associated expense is recognized - deferred until then
entries for endowment
DR cash, CR net assets (when cash received)
DR investment, CR cash (when investment made)
Depreciable capital assets (other than land)
recognized when the associated depreciation is recognized.
land accounting
credit to net assets as no depreciation
endowment entries
DR cash, CR net assets
DR investment, CR cash (when invested)
Disclosures for deferral
restricted deferred contributions
restricted net assets from permanent endowments
Restricted fund accounting - RR
Revenue recognized in period received or receivable in appropriate restricted fund. If no fund disclosed, use general fund.
Restricted fund accounting - JE for unrestricted fund received
DR Cash
CR Cont Rev (general fund)
Restricted fund accounting - JE for restricted fund received (with fund set up)
DR Cash
CR Cont Rev (specify fund)
Restricted fund accounting - JE for restricted fund received (with no fund set up)
DR Cash
CR deferred contribution
Restricted fund accounting - JE for when specific expense is incurred
DR expense
CR cash or a/p
DR deferred contribution
CR cont rev (general fund)
Restricted fund accounting - JE for when cap asset is bought
DR cap ass
CR cont rev (cap ass)
Restricted fund accounting - JE for when endowment is bought
DR cap ass
CR cont rev (endowment)
When can donated goods and services be recognized? How?
- FV can be reliably estimated
- goods and services used in nromal course of ops and would have been otherwise purchased
Capital asset treatment - under $500k in revenue
- can directly expense costs for tangible assets
OR - capitalize and amortize
