Accounting Trends and Techniques — Not-for-Profit Organizations

• Introduction
• Chapter 1: Sample Statements of Financial Position
  • Columnar Formats
  • Layered Formats
  • Selected Sections of the Statement
• Chapter 2: Sample Statements of Activity, Including Changes in Net Assets
  • Columnar Arrangements
  • Caption Sequences
  • Other Matters
• Chapter 3: Sample Statements of Cash Flows
  • Direct Method
  • Indirect Method
• Chapter 4: Sample Statements of Functional Expenses
• Chapter 5: Sample Disclosures - General
  • Description of Organization and General Accounting Policies
  • Contingencies and Other Uncertainties, Including Going Concern Questions
  • Related Parties
    • General Matters
    • Mergers and Spinoffs
    • Summarized Financial Data for a Component of the Organization
  • Use of Estimates
  • Comparative Prior-Period Information
  • Foreign Operations
  • Accounting Changes
  • Sample Management Statement of Responsibility
    • Management Responsibility for Financial Statements
    • "Sarbanes-Oxley" Public Attestation by Organization CEO and CFO
• Chapter 6: Sample Disclosures Related Primarily to the Statement of Financial Position
  • Investments
    • Investment Payout, Including the Total Return Concept
    • Concentration of Risk
  • Contributions Receivable
  • Other Receivables
  • Inventory and Prepaid Expenses
  • Collections
  • Fixed Assets
  • Liabilities
  • Net Assets
• Chapter 7: Sample Disclosures Related Primarily to the Statement of Activity and Related Statements
  • Measure of Operations
  • Contributions Received, Including Government Grants
    • Pass-Through Gifts (FASB Statement No. 136)
    • Challenge Grants, Other Conditional Promises to Give, and Intentions to Give
    • Contributions Other Than Cash and Marketable Securities
    • Split-Interest Agreements, Including Related Assets and Liabilities
  • Earned Income and Deferred Revenue
  • Expenses
    • Grants Awarded to Others
    • Taxes and Tax-Exempt Status
• Chapter 8: Financial Statements Prepared on a Basis Other Than GAAP
• Chapter 9: Information Outside the Financial Statements
• Appendix A: Excerpts From FASB Statement of Financial Accounting Standards No. 117, Financial Statements of Not-for-Profit Organizations
• Appendix B: Excerpt From FASB Statement of Financial Accounting Standards No. 116, Accounting for Contributions Received and Contributions Made
• Appendix C: Excerpts From AICPA Audit and Accounting Guide Not-for-Profit Organizations
• Appendix D: Excerpt From FASB Statement of Financial Accounting Standards No. 136, Transfers of Assets to a Not-for-Profit Organization or Charitable Trust That Raises or Holds Contributions for Others
• Appendix E: Excerpt From FASB Statement of Financial Accounting Standards No. 124, Accounting for Certain Investments Held by Not-for-Profit Organizations
• About the Authors

CHAPTER 1: Sample Statements of Financial Position

Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards No. 117, Financial Statements of Not-for-Profit Organizations, requires the following in a statement of financial position:

• Total assets
• Total liabilities
• Net assets by class and in total
• Information about liquidity
• Reasonably homogeneous asset and liability categories

The examples in this chapter which am in a multicolumnar format show the columns labeled with either names of organizations (combining statements) , or funds, but not classes of net assets. While it is not prohibited to have the columns represent the net asset classes, this is not shown because of the FASB's statement in paragraph 94 of FASB Statement No. 117, that classification of assets and liabilities by net asset class should be permitted but not required. Many believe that, because the reporting model in Statement No. 117 is based on net assets, in most cases, specific assets and liabilities are neither unrestricted nor restricted, and that any attempt to categorize them as such results in arbitrary classifications without an objective basis. Columnar formats showing funds as the columns all show the classes of net assets separately in the Net Assets section of the statement.

Accounting literature does not specify whether certain required information should be presented on the face of the statement of financial position or in the notes to the financial statements. One example is asset valuation allowances. Some organizations include them as part of the asset caption on the balance sheet; others disclose them in a note. Allowances for unconvertible receivables are more often included in the asset caption. Accumulated depreciation is more often disclosed in a note together with details of the components of fixed assets. Other examples are information about the nature and amount of restrictions on net assets and the composition of the investment portfolio. Some organizations present this information on the face of the balance sheet, while other organizations include this information in the notes.