Accounting and Reporting Practices of Not-for-Profit Organizations

• Chapter 0 - A Roadmap for Today's Course
• Case 1 - GAAP for Not-for-Profits
  • Learning Objective
  • The FASB ASC: Who, What and When
  • Required
• Case 2 - Rotary Luncheon - The Big Picture
  • Learning Objectives
  • Facts
  • Required
• Case 3 - Practice Concerns
  • Learning Objective
  • Required
• Case 4 - Contents of Financial Statements
  • Learning Objective
  • Required
• Case 5 - Footnote Disclosures
  • Learning Objective
  • Facts
  • Required
• Case 6 - Contribution Concepts
  • Learning Objective
  • Facts
  • Required
• Case 7 - Contributed Services, Facilities, and Gifts in Kind
  • Learning Objective
  • Facts
  • Questions
• Case 8 - The Museum's Collection
  • Learning Objective
  • Facts
  • Required
• Case 9 - Common Financial Statement Mistakes
  • Learning Objective
  • Facts
  • Required
• Case 10 - The Summer Theater Organization - Two Accounting and Reporting Issues
  • Learning Objective
  • Facts
• Case 11 - Fund Accounting and a Bridge from Funds to Net Asset Classes
  • Learning Objective
  • Part I
  • Parts II and III
• Case 12 - Bird and Burroughs, CPAs Serving Not-for-Profit Clients
  • Learning Objective
  • Facts
  • Required
• Case 13 - Allocation of Costs Relating to Fundraising
  • Learning Objective
  • Facts
• Case 14 - Sample Nonprofit Organization - The Treasurer Meets with the Finance Committee
  • Learning Objective
  • Facts
  • Required
• Case 15 - When Is a Grant a Contribution? When Is It an Exchange Transaction?
  • Learning Objective
  • Required
• Case 16 - "Operating" and "Non-Operating" in the Activity Statement
  • Learning Objective
  • Facts
  • Required
• Case 17 - Split-Interest Agreements
  • Learning Objective
  • Facts
  • Required
• Case 18 - Membership Dues
  • Learning Objective
  • Required
• Case 19 - The Will
  • Learning Objective
  • Introduction
  • Facts
  • Required
• Case 20 - Three Not-for-Profits - Reading Their Statements
  • Learning Objective
  • Facts
  • Required
• Appendix A - Avant Ministries
• Appendix B - Museum of Science
• Appendix C - Denver Botanic Gardens, Inc
• Appendix D - Child Care Council, Inc
• Appendix E - Bentley College
• Appendix F - Latest Developments
• Value Aids
• AICPA Audit and Accounting Guide - Not-for-Profit Organizations
• Checklists and Illustrative Financial Statements for Not-for-Profit Organizations

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Case 2 - Rotary Luncheon - The Big Picture

Learning Objectives

To introduce basic financial statements for not-for-profit organizations.

Also, to review the major features of accounting and reporting for not-for-profit organizations.

(Before tackling this case, consider Chapter 3 of the Guide.)

Facts

The setting is a table during lunch at a local Rotary meeting.

You are the CPA, Jane. Seated at the table with you are Nate, an auto dealer; Ann, owner of a dress shop; and Jack, president of a local bank.

A conversation begins.

Nate: Jane, what are you up to now that the tax season is over?

Jane: Some of the heat is off. But now I'm catching up on my work with my not-for-profit clients. Some of the rules for accounting for not-for-profits are unique, and some auditing problems are different.

Ann: Are the books kept differently? What are the differences?

Jane: Payroll's the same. And they pay bills when due. And the books are not very different.

Jack: Well, what's it all about, Jane? We're not familiar with accounting for not-for-profits. What is it like?

Required

Without boring your neighbors at the table, but recognizing that they are fairly sophisticated about finance and business, present a brief answer, based on the information in Chapter 3 of the Guide. Emphasize a few major points.

Case 3 - Practice Concerns

Learning Objective

To alert you to five special concerns when a CPA works on not-for-profit clients' statements.

(Before tackling this case, consider the following paragraphs in the Guide: 3.20, 3.21, 14.04, 14.05, 3.05, 3.10, 3.15, 3.18, 3.12, 3.13, and 13.41 to 13.55.)

Required

Respond to the following concerns about accounting for not-for-profits.

1. In the financial statements, is it appropriate to present summary comparative figures for the prior year?

2. What exactly is meant by the term "restriction?"

3. Is the Statement of Cash Flows the same for not-for-profits as for businesses?

4. The Statement of Activities leads down to Change in Net Assets. Is it permissible to break out the changes resulting from operations?

5. What accounting treatment should be followed for joint costs that include the costs of a fundraising appeal?

Case 4 - Contents of Financial Statements

Learning Objective

To call your attention to certain financial reporting details required under FASB ASC 958 (FASs 116, 117, and 124), and review the financial statements of Avant Ministries in Appendix A.

Required

Consider the following paragraphs in Chapter 3 of the Guide and review Avant Ministries' statements. Answer the questions next to each paragraph.

Question 1. Paragraph 3.04
Which methods are used to provide information about the organization's liquidity?

Question 2. Paragraph 3.05
Does the Statement of Financial Position display figures for total Net Assets, Unrestricted Net Assets, Temporarily Restricted Net Assets, and Permanently Restricted Net Assets?

Question 3. Paragraph 3.07
Are board-designated net assets displayed in any net asset class?

Question 4. Paragraph 3.08
Does the Statement of Activities provide the amounts of changes in each class of net assets plus the change in total net assets?

Question 5. Paragraph 3.08
How are reclassifications displayed?

Question 6. Paragraph 3.13
Is there any provision for an intermediate measure of operations?

Question 7. Paragraph 3.14
How are expenses classified - by nature or function?

Question 8. Paragraph 3.17
Which method is used to report cash flows from operations?

Question 9. Paragraph 3.18
In the Statement of Cash Flows is there display of cash contributions for longterm use under Financing Activities?

Question 10. Paragraph 3.20
Does Avant present any comparative information? If so, is the information presented in conformity with GAAP?

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