Donor imposed restrictions tell you…
How you book revenue
Donor imposed conditions tell you…
When you book revenue
An activity is presumed to be fundraising, unless what 3 criteria are met?
1 purpose
2 audience
3 content
Criteria for allocation of fundraising:
Purpose
Activity has more than 1 purpose
Evidenced by whether compensation or fees for performing the
Activity of amount raised or performance of management + general
Activity
It looks better, when organization has more…
Expenses for program activities
Criteria for allocation of fundraising:
Audience
If the audience is selected on the basis of its likelihood to contribute
To the not for profit, this criterion is not met
Criteria for allocation of fundraising:
Content, in order for this criterion to be met…
The mailing or event must include a call to action other than raising money
Ex. Mailing from the American Cancer Society might call for recipients
To have regular checkups, exercise, and eat healthy
If the university provides a $2,000 scholarship based on grades and gets $8,000 in cash what is the journal entry for student tuition and fees?
Cash. 8,000
Revenue deduction-student scholarships. 2,000
Revenue-student tuition and fees. 10,000
What is the journal entry if the university provides $2,000 in graduate assistantships for service in the biology department and receives cash of $8,000?
Cash. 8,000
Expense-instruction (biology department). 2,000
Revenue- student tuition and fees. 10,000
For healthcare organization accounting-private sector:
Financial statements
1 balance sheet 2 statement of operations 3 statement of changes in net assets 4 cash flow statements 5 notes
Healthcare organization accounting-not for profit
Other revenues, gains and losses (included in operating revenues)4
1 investment income
2 fees from educational programs
3 proceeds from sale of cafeteria meals
4 proceeds from gift shop, parking lot revenue, etc.
Healthcare organization accounting-private sector: Statement of operations performance measure what must be reported separately:
Equity transfers involving…3
1 Other entities that control the reporting entity or
2 are controlled by the Reporting entity or
3 are under control of reporting entity
Healthcare organization accounting-private sector: Statement of operations performance measure what must be reported separately:
Receipt of…
Restricted contributions
Healthcare organization accounting-private sector: Statement of operations performance measure what must be reported separately:
Contributions of (and assets released from donor restrictions related to)…
Long lived assets
Healthcare organization accounting-private sector: Statement of operations performance measure what must be reported separately:
Unrealized gains and losses…
2) what’s the exception
On investments not restricted by donors or by law
2) except for investments classified by trading securities
Healthcare organization accounting-private sector: Statement of operations performance measure what must be reported separately:
Investment returns…
Restricted by donors or by law
Healthcare organization accounting-private sector: Statement of operations performance measure what must be reported separately:
Other items that are required by GAAP to be…
2) 3 examples
Reported separately
1 extraordinary items
2 effect of discontinued operations
3 accounting changes