1. hospitals/health care
2. colleges/universities
3. voluntary health/welfare organizations
4. other (ONPOs): social clubs, political parties, museums, etc

FASB- private NFPs

GASB- public NFPs

• fund info not reported
• A/L combines and fund balances are translated into unrestricted NAs, temporarily restricted NAs, and permanently restricted NAs

1. SOFP
2. Statement of activity
3. SOCF

*statement of functional expenses is also required for voluntary health and welfare organizations

1. doesn't present fund info for organization as a whole
2. "fund balance" replaced by NAs
3. Net assets broken down into 3 categories above

1. revenues and gains
2. NA released from restrictions
3. expenses and losses 
• programming=main mission 
• supporting=management and general, and fund raising
4. change in net assets

1. operating- unrestricted contributions, unrestricted investment earnings, revenue restricted for operating purposes, grants, etc.
2. Investing- sale of investment assts and securities, purchase of capital assets
3. financing- contributions of investment revenues restricted for LT purposes, debt proceeds/repayment, lease payments

1. held for public exhibition, education, or research
2. protected, kept, and reserved
3. subject to a policy that requires proceeds from sales of collection items to be used to acquire other investment items for collections

1. if donated, need not be capitalized
2. if sold and proceeds used for same type of asset, transactions don't have to be recorded
3. disclose in notes

1. report at FV
2. debt securities not broken down into classifications
3. debt securities always value at FV (revalued at BS date)

1. endowments are contributions for which the principle (corpus) must remain intact in perpetuity
2. earnings on endowment may be expendable-restricted, expendable-unrestricted, or non-expendable
• "regular" or "pure" endownment
• included in perm. restricted NAs

1. quasi-endowments- set aside by governing board for which principal must be retained and invested. included in unrestricted NAs
2. term endowments- gifts and bequests from 3rd parties invested for certain time period or until certain event, but after criteria met, expendable in full. included in temp. restricted NAs
3. board designated funds- set aside by governing board for specific purposes. not endowments b/c principal can be spent. set asside from other unrestricted assets by establishing "unrestricted NAs"
4. "designated for __ account"

• reported in endowment income or investment income on accrual basis
• category depends on nature specifiec above

• recognized as contribution revenue in period made, even if not yet received
• donation other than cash is measures at FV on date of gift

• promise to contribute
• recognized as contribution if unconditional
• if conditional, not contribution until conditions are substantially met or whe likelihood conditions wont be met is remote

1. specified operating purposes
2. capital purposes
3. time restrictions and endowments

1. specified operating purposes
2.  
3. 
   

• "program restrictions"
• unrestricted for any purpose in current period or temporarily restricted because available for specific purposed in current period

1.  
2. capital purposes
3.  

• "asset acquisition"
• temporarily restricted resources available for capital purposes in current period

1.  
2. 
   
3. time restrictions and endowments

• temporarily restricted b/c available after contingency or time (time restrictions)
• not available for expenditure at any time although earnings may be expended (endowments)

• portion received later- "temporarily restricted"
• portion received now- "unrestricted"
• increase in NPV of pledge at BS date b/c of recalculation goes to contribution income
• future payments received, assets reclassified to unrestricted net assets but revenue is not recognized

can be recognized if...

1. non-financial assets are enhanced, or
2. services requiring special skills by persons w/ those skills and are normally purchaseable by organization

• entry: record FV of service as a credit to contribution revenue and a debit to either an asset (if non-financial asset enhanced) or expense (if services are provided)

1. organization acts as a cash conduit/agent
2. organization has variance power
3. financially interrelated organizations

1. organization acts as a cash conduit/agent
2.  
3.  

• when restrictions are such that recipient has no decision making power or monitoring responsibilities
• revenue not recognized
• liability offsets receipt

1.  
2. organization has variance power
3.  

• can set aside restrictions and dispose of resources
• recognize contribution revenue and donor recognizes expense

1.  
2.  
3. financially interrelated organizations

• recipient and ultimate beneficiary are financially interrelated and transfer should be recognized as contribution revenue by recipient and ultimate beneficiary rcognized interest in NAs of recipient
• exists when (a) one entity can influence operating/financing decisions of another and (b) 1 entity has ongoing economic interest in other's NAs

• objectives of FR for state/local gov. entity reporting unit
• applies to business/gov-type entities

• "TRUCCR"
• timeliness, relevance, understandability, comparability, consistency, reliance

1. SOFP
2. SOA
3. SOCF
4. SOFE (functional expenses)

1. used by government and NFP orgs
2. differs because primary resources are received through non-exchange transactions
3. primary mission is not to get return to investors
4. restrictions on resources and ownership

• these accounts are incorporated to control revenues/expenses and are subject to legal spending limits and purposes
• formal D/C entries made at beginning of period to record estimated revenue and authorized expenses
• closed at end of period

• to ensure entity doesn't order more goods than it has authority to
• estimated expenditure recorded at time order placed

1. depends on fund used and report that displays results
2. government fund transactions: modified accrual basis
3. proprietary fund transactions: full accrual accounting

1. fund statements
2. government-wide (or entity-wide) statements

1. fund statements
2.  

1. government funds (modified)
2. proprietary funds (full)
3. fiduciary funds (full)

1.  
2. government-wide (or entity-wide) statements

• includes info from gov. and proprietary funds
• can only combine if same basis is used (converted from modified to full)

1. assess availability of current period resources
2. assess service efforts and accomplishments
3. demonstarte compliance legally

1. general
2. special revenue
3. debt service
4. capital project
5. permanent

*GRASPP

(^A=buy a vowel)

1. enterprise
2. internal service

*SE

1. pension trust
2. investment trust
3. private purpose trust
4. agency trust

*PAPI

1. expendable funds- not concerned with preserving capital (expensed, not retained)
2. use modified basis and can use budgetary and encumbrance accounting
3. capital assets and LT debt- related to these funds are recorded separately in off-books records
4. only fund required

*Current A - Current L = Fund Balance

1. orientation: determine income
2. activities that are self-supporting (at least 50% of costs are coverred by fees)
3. activities where intent is to cover at least 50% of costs through fees, or which would benefit from additional control measures by full accrual basis accounting may be included
4. record and report their own capital assets and LT debt using full-accrual basis

*(current A + Capital A) - (Current L + LT-L) = RE + contributed capital

• monies/resources held by gov. unit in a trustee or agent capacity
• generally use full-accrual basis accounting

fiduciary fund category

Private purpose Vs. Agency

Private purpose= hold assets for long periods of time

Agency trust= does not

1. measurement focus
2. revenue recognition
3. expenditure recognition
4. increase/decrease in NAs other than revenues and expenses

1.  
2. revenue recognition
3.  

• measurable and available
• if "subjext to accrual", normally recognized
• "60 day rule"- can recognize revenue received within 60 days of year end

1.  
2.  
3. expenditure recognition
4.  

must be measureable and incurred (accrual) with 4 exceptions:

1. interst on general LT debt: on due date
2. no distinction for capital/period expenditures
3. inventoriable items: can use purchase method or consumption
4. prepaid items- purchase or consumption method
   

1.  
2.  
3.  
4. increase/decrease in NAs other than revenues and expenses

• other financing sources- increase in NAs of a fund which don't result in increase in NA of organization as a whole
• other financing uses- decrease in NA of a fund which don't result in decrease in NA of organization as a whole

• requires creation of specific budgetary accounts, recording of budgetary items, and preparation of reports that compare budgeted and actual acmounts
• only funds that used modified accrual basis generally use budgetary accounting

1. expenditures
2. revenue
3. other financing uses
4. other financing source

1. appropriations
2. estimated revenues
3. estimated OFUs
4. estimated OSFs
5. budgetary fund balance (no nominal balance. balances budgetary entry)

D- estimated revenues

C- appropriations

D- budgetary fund balance

C- appropriations

D- Appropriations

C- estimated revenue

• estimates value of purchase orders outstanding
• encumbrances are used to control expenditures
• appropriations - encumbrances - expenditures= unencumbered, unexpected appropriation 

D- encumbrances

C- fund balance assigned

D- fund balance assigned

C- encumbrances

D-Expensitures

C- vouchers payable/cash

• liquidate encumbrance and record expenditure
• change in unencumbered, unexpected appropriation cost

• not received, close out. 
• portion of fund balance set asside to cover estimated amounts of orders outstanding at year-end