Financial Accounting Standards Board ( Fasb's Implementation Of Not-For-Profit Accounting

References to Handbook — Accounting Part III apply to NPOs that have adopted accounting standards for not-for-profit organizations (ASNPO).

Throughout this class we were introduced to a number of financial statements, many of which I never knew existed. It was nice to see that the formatting of these newly introduced financial statements were consistent and had many similarities to the traditional accounting statements for profit seeking businesses. These financial statements flowed together much like the accounting statements I have been used to seeing. This similarity in turn allowed me to smoothly

In 1973 the Financial Accounting Standards Board (FASB) was established to set the financial accounting standards in the United States of America for nongovernmental entities. These standards are collectively called U.S. Generally accepted Accounting Principles, or U.S. GAAP. The Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants acknowledge the authority of these standards (FASB, n.d). A “proven, independent due process” is used to collect the viewpoints of the financial statements prepares and users for the constant improvement of these standards. An Accounting Status Update(ASU) is not an authoritative source however documents the amendments to communicate the changes in the FASB Codification for a user to understand the reason and future of those changes (FASB, n.d).

In this paper I have defined accrual and cash basis accounting. Also, I have answered the following questions: Explain the difference between the accrual basis of accounting and the cash basis of accounting. What are the major reasons for using accrual accounting? What are the purpose of a journal and a ledger? Give an example of a contra-asset, and explain how it is recorded on the ledger as a transaction. Explain what a “prepaid expense” is and how it is recorded on the ledger as a transaction. What are the major differences in recording transactions for a for-profit organization versus a not-for-profit, or are there any? List and record each transaction

The purpose of this research paper is to summarize research on codification topic 410 based on the information found in different academic databases. The first part of the paper will focus on the FASB Codification database. The second part of the paper will compare and contrast three other databases on the same codification 410 within the RIA Checkpoint databases: AICPA: Auditing and Accounting Guides, SOX Reporter, and GAAP Practice Manual. A summary of benefits and issues with the searches of each database will also be discussed.

Details of compensation arrangements around related party transactions are important in disclosures. While the name of the related party is not required by law to be published in the disclosure, it may show good stewardship to disclose as much information as possible to demonstrate that the relationship is done in good faith and is profitable for business growth. In addition, if transactions are eliminated in consolidated statements then the financial statements of the related party should be included in disclosers as required by GAAP practice (GAAP,

“We certify that the attached work is entirely our own, except where material quoted or paraphrased is acknowledged in the text. We also declare that it has not been submitted for assessment in another unit or course.”

| |Write a 700- to 1,050-word paper analyzing the disclosures contained within the notes to the | | |

This paper was originally written for Financial Management for Nonprofits 380, taught by Professor Zelhart.

Due to the lack of specific guidance in the previous standard, there was greater room for judgement when identifying the distinct goods and services within a contract. In other side, the new standard has provided a more specific framework of how revenue is allocated between different items. Since construction companies often included multi-element contracts, IFRS 15 may affect the determination of whether certain elements of a contract are recognised separately, which the profile of revenue recognition might be impacted. For example, the new standard may affect whether a parcel of land that is sold as part of a contract foe the construction of a building is considered to constitute a distinct good to be accounted for separately (Deloitte, 2014). Moreover, the identification of separate service obligation also might be affected. For instance, the services performed should be accounted separately or are they not distinct from the

This paper will examine budgeting procedures for profit and non-profit businesses and compare similarities, and if they exist, differences in accounting practices. This paper will also attempt to review what is Generally Accepted Accounting Procedures (GAAP) for budgeting for any organization to be successful.

Bastian, Bettina. Inaash: Bridging the Chasm between Non-profit Objectives and Long-term Financial Profitability. Ivey ID: 9B14M004. London, Canada: Ivey Publishing.

A not for profit organization is a corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive (Legal, 2013).” There are immense community benefits as a not-for-profit generally accepts everyone regardless of ability to pay. Nonprofit organizations are granted tax-exempt status which helps them to provide services to the public and are expected to be effective managers of their finances as well as being efficient (Financial Management, 2010). In doing so, they can gain exemptions from federal and state incomes taxes and have the ability to solicit tax-deductible contributions (Financial Management, 2010). Organization must follow legal financial

The Financial Accounting Standards Board has issued for public comment two Exposure Drafts related to its disclosure framework project. The first exposure draft proposes amendments to Statement of Financial Accounting Concepts - Conceptual Framework for Financial Reporting, Chapter 3 – Qualitative Characteristics of Useful Financial Information. The purpose of this proposed amendment is to clarify the concept of “materiality”. FASB defines materiality as, information is material if omitting it or misstating it could influence decisions that users make on the basis of the financial information of a specific reporting entity. In other words, materiality is an entity-specific aspect of relevance based on the nature or magnitude or both of the items to which the information relates in the context of an individual entity’s financial report. Consequently, the Board cannot specify a uniform quantitative threshold for materiality or predetermine what could be material in a particular situation.

A Non-profit Organisation (NPO) is an establishment that uses its funding for the pursuit of a specific purpose such as for a charitable cause (Lorette, 2015). It is different from a for-profit organisation as its objective is to provide greater good to the society rather than to maximise the wealth of its stakeholders. The surplus revenues of an NPO are used for either its expansion, self-preservation or plans and no part of the profit is distributed to its members. NPOs are increasingly starting to operate like traditional business organisations as strategic planning and marketing is imperative for their survival.