Financial Accounting Standards Board For Profit And Nonprofit Organizations Essay

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Introduction The Financial Accounting Standards Board (FASB) determines financial accounting and reporting standards for profit and nonprofit organizations that follow the Generally Accepted Accounting Principles (GAAP) (FASB, 2016). The FASB establishes various accounting standards that better guides the organization financially and promotes transparency with a broader understanding of its financial status through reporting of useful information that can be provided to future investors and board members. One standard is FASB Statement of Financial Accounting Standard (SFAS) 117 which enhances the “relevance, understandability, and comparability of financial statements issued by those organizations” (FASB, 2016a). The following paper provides a brief description of the nonprofit organization, the American Littoral Society (Society), summarizes findings of the financial status of the Society when considering FASB SFAS 117 and their 2015 financial statement (American Littoral Society, 2016); discusses internal and external control policies; and gives recommendations and conclusions in sustaining financial integrity. The American Littoral Society The American Littoral Society (Society), established in 1961, is a nonprofit 501(c)3 organization headquartered at the Sandy Hook Gateway National Refuge located in Highlands, New Jersey. The organization’s soul mission is to care for the coast and does so through conservation, restoration, advocacy, and educational outreach. The

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