Chapter 10 - Accounting for not-for-profit organizations. In this chapter students will be able to: Distinguish not-for-profit organizations (NFPs) from entities in the governmental and commercial sectors of the . economy, identify the authoritative standards-setting body for establishing GAAP for nongovernmental NFPs, explain financial reporting and accounting for NFPs. | Essentials of Accounting for Governmental and Not-for-Profit Organizations Chapter 10 Accounting for Not-For-Profit Organizations McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 10 – Learning Objectives Describe characteristics of private not-for-profit organizations and the accounting for contributions Apply the accrual basis of accounting in the recording of typical transactions of a private not-for-profit organization Prepare the financial statements for a private not-for-profit organization Standard Setting Authority GASB Authority over government related not-for-profits Not-for-profits owned or controlled by a governmental entity should follow applicable GASB standards Most commonly, these follow enterprise fund accounting FASB Private not-for-profits AICPA audit guides also applicable Major SFASs 93, 116, 117, 124, 136, 164 Private Not-For-Profits FASBs 116 & 117 were written in order to bring comparability between the financial reports of Private Colleges, Hospitals, Voluntary Health and Welfare Organizations and Other Not-for-Profits. However, because of unique features of the college and hospital settings, these entities are covered in greater detail in separate chapters. VHWOs and Other Not-for-Profits The remainder of this chapter focuses on Voluntary Health and Welfare Organizations and Other Not-for-Profits. What are the characteristics of a VHWO? Promotes general health and well-being of the public. Tends to operate mainly from grants and gifts. Examples: United Way, American Cancer Society, Girl Scouts, YMCA. Understanding the Basic Financial Statements The three required statements are: Statement of Financial Position Statement of Activities Statement of Cash Flows Voluntary Health and Welfare Organizations must also prepare a Statement of Functional Expenses This statement is recommended but not required for other not-for-profits. Basis of Accounting and Use of Funds Accrual Basis: The accrual . | Essentials of Accounting for Governmental and Not-for-Profit Organizations Chapter 10 Accounting for Not-For-Profit Organizations McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 10 – Learning Objectives Describe characteristics of private not-for-profit organizations and the accounting for contributions Apply the accrual basis of accounting in the recording of typical transactions of a private not-for-profit organization Prepare the financial statements for a private not-for-profit organization Standard Setting Authority GASB Authority over government related not-for-profits Not-for-profits owned or controlled by a governmental entity should follow applicable GASB standards Most commonly, these follow enterprise fund accounting FASB Private not-for-profits AICPA audit guides also applicable Major SFASs 93, 116, 117, 124, 136, 164 Private Not-For-Profits FASBs 116 & 117 were written in order to bring comparability between the .
