Chapter 4: Financial Reporting for Nongovernmental Not-for-Profit Entities

In this section

• Overview of Not-for-Profit Accounting and Governing Principles
  Discover the unique environment of not-for-profit accounting, including stakeholder expectations, specialized standards under FASB ASC 958, and net asset classifications crucial for mission-driven financial reporting.
• Statement of Financial Position (Net Assets: With/Without Donor Restrictions)
  Explore how not-for-profit organizations classify and present net assets with and without donor restrictions, including reclassification guidelines when donor restrictions expire. Discover best practices for SoFP disclosures and essential insights into FASB ASC 958 compliance.
• Statement of Activities (Classification of Revenues, Expenses, Support)
  Explore the comprehensive presentation of revenues, expenses, and support under the Statement of Activities for nongovernmental not-for-profit entities, including the classification of donor restrictions, contributions, grants, and program service revenue.
• Statement of Cash Flows (Direct vs. Indirect Methods) for Not-for-Profit Entities
  Explore how not-for-profit organizations apply direct and indirect methods when preparing the statement of cash flows, focusing on the distinct treatment of pledges, donor contributions, and restricted funds.
• Functional Expense Reporting (By Nature and Function)
  Learn how not-for-profit entities classify expenses by nature and function, create matrix-based disclosures, and comply with GAAP requirements for functional expense reporting.
• Disclosures and Special Topics in Not-for-Profit Accounting
  Comprehensive guide to NFP specialized disclosures, including endowment funds, underwater endowments, donor restrictions, and advanced split-interest agreements.