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64 Cards in this Set
- Front
- Back
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FASB |
Financial Accounting Standards Board Business(for-profit) Nongovernmental (NFP) |
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GASB |
Governmental Accounting Standard Board State and local gov Governmental (NFP) |
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Governmental NFP |
no ownership expenses incurred to provide benefit revenues and expenses arent linked donors can direct spending |
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special purpose gov |
provide a single function or limited range of functions |
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FASAB |
sets standards for fed gov and its agencies and departments both internal and external financing |
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general purpose gov |
provide a wide range of services |
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Reason for NFP organizations report expenses |
for donors who want to see how they are allocating their money |
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GASB's concept of Accountability |
-cornerstone of all financial accounting
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GASB's concept of Accountability
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based on the belief that citizens have the "right to know" |
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GASB's concept of Accountability
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the right to receive openly declared facts that may lead to public denotes by citizens and their elected representatives |
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interperiod equity |
current year revenues are sufficient to pay for services |
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fiscal accountability |
Fund financial statements |
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operational accountability |
Gov-wide statements |
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Business (for profit) |
publicly held (corporations) privately held (partnerships) |
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Nongovernmental (NFP) |
taxable tax exempt |
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Governmental (NFP) |
general purpose (states and cities) special purpose (colleges and hospitals) |
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State and Local Gov |
use resources such as taxes, fees,and fines provides services to citizens no ownership must have a budget |
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Governments can act like: |
Governmental Business Fiduciary |
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Governments can act like: Governmental |
by collecting taxes, fees, fines, and licenses provide services w/no fee such as education, public safety, social services |
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Governments can act like:
Business |
services for a fee such as public transportation and recreational activities |
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Governments can act like: Fiduciary |
managing money for another entity acts like a caretaker |
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Current financial resources |
reports inflows/outflows of current resources |
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what resource measures fiscal accountability |
current financial resources |
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how are Government fund financial statements accounted for |
modified accrual accounting measure fiscal accountability |
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Current financial resources |
reports inflows/outflows measures FISCAL accountability uses modified accrual accounting |
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Economic resources |
report NI, financial position, and cash flows ALL current and LT resources |
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what resource measures operational accountability |
economic |
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how are Gov-wide, proprietary, and fiduciary funds accounted for |
full accrual accounting measure operation accountability |
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net position is found on which statement |
balance sheet |
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statement of activities is found on which statement |
income statement |
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economic resources |
uses full accrual accounting reports NI, financial position and cash flows ALL current and LT resources measures operational accountability |
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Governmental Funds |
1) General 2) Special Rev 3) Capital project 4) Debt service 5) Permanent |
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General Fund |
bulk of all activity is recorded here records of current financial resources -modified accrual |
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Special Revenue Fund |
collection to a dedicated use -modified accrual |
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Capital Project Fund |
money available for use in a building -modified accrual |
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Debt Service Fund |
keeping track of how much is owed -modified accrual |
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Permanent Fund |
money set aside for investments to generate capital gains, dividends, and interest -modified accrual |
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Proprietary Funds |
act like a business 1) Enterprise 2) Internal |
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Enterprise Fund |
business that serves everyone -full accrual |
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Internal Service Fund |
business is only for city -full accrual |
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Fiduciary Funds |
manages other entities money 1) Agency Fund 2) Trust Fund |
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Agency Fund |
sales tax divided up into different parts for the state -full accrual |
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Trust Fund |
different entities putting money and allowing the gov to control it -retirement -full accrual |
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Proprietary Financial Reports |
-net position = A=L+NP -rev, exp, and change in NP -full accrual |
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Fiduciary Financial Reports |
-stmt of fiduciary NP -stmt of changes in fiduciary |
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are fiduciary financial reports reported on the Gov-wide fund? |
No, because they are assets belonging to other people. they are not the entities own assets |
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3 categories of net assets |
-unrestricted -temporarily restricted -permanently restricted |
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unrestricted net assets |
no restrictions, can use money for anything included in operating activities |
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temporarily restricted net assets |
money used for a specific purpose donor put restrictions on use, can be used only for specific purpose included in financing activities |
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permanently restricted net assets |
money can not be spent, but can be used to generate capital gains, dividends, or interest. --endowments included in financing activities |
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Sources of revenue for Nongovernmental Non profits |
Donations and Grants= voluntary Investment Income Fees for Services Other Revenue |
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Contributions |
voluntary recorded as revenue when received, promised, or pledged, and if gift is unconditional |
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J/E for receiving a pledge |
Pledges Recv 10,000 Contributions Rev- UR 10,000 |
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J/E for a Contribution
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Cash 10,000 Contribution Rev- UR 10,000 |
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J/E for a Good |
recorded at Face Value Inventory 10,000 Contributions Rev- UR 10,000 |
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J/E for Property
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recorded at Face Value Equipment 10,000 Contribution Rev- UR 10,000 it would be TR if item is used for a specific use |
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J/E for Securities |
recorded at Market Value at receipt of date Investment/Stock 10,000 Contributions Rev 10,000 |
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J/E for Services like volunteering |
Expense 10,000 Contributions Rev- UR 10,000 -record what you would normally pay someone and if the labor requires a special skill |
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Special Events |
are recorded net of cost of the event |
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Expenses |
Programs Services Fundraising Administrative |
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Program Services |
directly related to the mission/service |
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Fundraising |
asking people for money |
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Administrative |
O/H and other general expenses |
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For expense to be reported as program services expenses, they must meet the following criteria |
Purpose- furthers mission Audience- not just donors Content- call for action |
