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
Instructor
Diane Edelstein
Diane E. Edelstein is a Senior Partner at Maher Duessel in Pittsburgh, PA and has over thirty years of experience in public accounting. Her entire auditing career has been of non-profits, governments and Single Audit.
Diane speaks throughout the country on Non-profit accounting and auditing and Single Audit. She was member of the AICPA NPO Planning Conference Committee from 2012 – 2017 and continued to speak at the annual conference through 2019.
Diane currently serves on the AICPA Peer Review Board – GCA PMTF (Government and Compliance Audits Practice Monitoring Task Force) and is a past member of the PICPA Professional Ethics Committee and the PICPA Peer Review Committee.