NFP- first of all forget all about GASB…this is full FASB… LT assets and liabilities show in stmt of financial position.
For the net assets, there r 3 buckets -UN , TR and P. All the donations r segregated only as per Donor's Specifications.
Then come stmt of activity – which shows activity of the 3 buckets. If UN – whenever amount is spent do the entry. There r two kind of expenses that reduce UN -Program Expense and Support Expense.
If TR – see if the time/ reason restriction has been cleared. If Yes, just reclassify (pick from one bucket and put it in other) to UN (no entry) and do the entry for spent using UN.
If overspent, show as reduction from UN too. IF, Donor imposed time/ reason, but met in same period , just show as UN.
P is easy..
Revenue: There r 6 pnts u must remember.
1. Cash contribution: (Recd= Revenue) @ FV on receipt date -UN
2. Unconditional promises – amt given in future (pledge= Revenue) @FV on the date of promise
3. Conditional promise- kind of liability , if condition not fulfilled it is not urs.
4. Multi yr pledge: -@PV on the date of pledge. difference in PV and actual is contribution income.
5.Allowance for uncollectible pledge @ NRV
6. Split interested agreements- shared with others as per specifications of the donor. @FV
Then there is services . And there are VHWO which require stmt of functional expenses…And there r universities and discrete and blended … a lot of little details…
I might be wrong in some areas but if others will hop-in and correct it , it will be great help to me too.
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