Set 8 FR 36 NFP

Question 1

What framework do NFP follow?

Answer 1

ASPE or IFRS, Or ASNPO.

Question 2

4 statements in NFP

Answer 2

SFP, Statement of ops, statement of changes in net assets or funds balances and statement of cash flows

Question 3

Two types of reporting

Answer 3

aggregate or fund

Question 4

4 types of funds

Answer 4

general/restricted/capital asset/endowment

Question 5

What is endowment fund?

Answer 5

minimum balance must be maintained. generally interest is what can be spent.

Question 6

Two methods of accounting

Answer 6

Deferral / restricted fund

Question 7

Which method must fund accounting be used?

Answer 7

restricted fund. optional with deferral

Question 8

When are unrestricted funds recognized in revenue?

Answer 8

• amount to receive can be reliably estimated

- collection reasonably assured

Question 9

Restricted funds - deferral method - RR?

Answer 9

when associated expense is recognized - deferred until then

Question 10

entries for endowment

Answer 10

DR cash, CR net assets (when cash received)

DR investment, CR cash (when investment made)

Question 11

Depreciable capital assets (other than land)

Answer 11

recognized when the associated depreciation is recognized.

Question 12

land accounting

Answer 12

credit to net assets as no depreciation

Question 13

endowment entries

Answer 13

DR cash, CR net assets

DR investment, CR cash (when invested)

Question 14

Disclosures for deferral

Answer 14

restricted deferred contributions

restricted net assets from permanent endowments

Question 15

Restricted fund accounting - RR

Answer 15

Revenue recognized in period received or receivable in appropriate restricted fund. If no fund disclosed, use general fund.

Question 16

Restricted fund accounting - JE for unrestricted fund received

Answer 16

DR Cash

CR Cont Rev (general fund)

Question 17

Restricted fund accounting - JE for restricted fund received (with fund set up)

Answer 17

DR Cash

CR Cont Rev (specify fund)

Question 18

Restricted fund accounting - JE for restricted fund received (with no fund set up)

Answer 18

DR Cash

CR deferred contribution

Question 19

Restricted fund accounting - JE for when specific expense is incurred

Answer 19

DR expense
CR cash or a/p

DR deferred contribution
CR cont rev (general fund)

Question 20

Restricted fund accounting - JE for when cap asset is bought

Answer 20

DR cap ass

CR cont rev (cap ass)

Question 21

Restricted fund accounting - JE for when endowment is bought

Answer 21

DR cap ass

CR cont rev (endowment)

Question 22

When can donated goods and services be recognized? How?

Answer 22

• FV can be reliably estimated

- goods and services used in nromal course of ops and would have been otherwise purchased

Question 23

Capital asset treatment - under $500k in revenue

Answer 23

• can directly expense costs for tangible assets

OR - capitalize and amortize