Nonprofit Financial Statements (Currently Unavailable)

Author: Diane Edelstein

This course will cover the unique elements of nonprofit financials statements. It will discuss the core differences between nonprofits and for-profit entities. We will cover the financial statements that are required for GAAP (generally accepted accounting procedures). We will also discuss unique areas in non-profits, including collections, donated services, agency transactions, joint activities and more.

Publication Date: January 2020

Topics Covered

• Big Picture
• Types of Not-for-Profit Entities
• The Financial Statements
• Statement of Activities
• Statement of Cash Flows
• How NFPs Report Functional and Natural Expense Information
• Option to Present on Statement of Activities
• Five Key Areas of Change in Reporting
• Reporting of Net Assets
• Net Asset Disclosure Requirements
• Example Net Assets Footnote
• Underwater Endowments
• Liquidity Information
• The Operating Measure Information Provided by Some NFPs
• Reporting of Expenses
• Note Disclosure
• Financial Reporting Options
• Unique Nonprofit Areas
• Contribution Concepts
• Contribution versus Exchange Transaction
• Contributed Services, Facilities and Gifts in Kind
• Collections
• Joint Activities
• Endowments
• Operating versus Non-Operating
• Split Interest Agreements and Beneficial Trusts
• Membership Dues
• Agency Transactions
• Programmatic Investments
• Other Tidbits

Learning Objectives

• Recognize the characteristics of a Nonprofit Organization
• Identify the required financial statements
• Differentiate an exchange transaction from a contribution
• Recognize the need fir financial statement disclosures
• Identify and apply the flexibility in financial reporting to further describe the entity
• Describe board designated net assets
• Describe Statement of Cash Flows
• Recognize true statements of reporting expenses
• Identify changes to ASU 2016-14
• Describe true statements of collections
• Describe Intermediate Measure of Operation
• Recognize Supporting Activity
• Identify true characteristics of Statement of Cash Flows
• Describe Operating Measure Information for NFP
• Recognize what donor restriction would include
• Describe Underwater Endowments
• Identify who must show expenses by nature and function

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (5 hours)

Program Prerequisites
None

Advance Preparation
None