Not - For - Profit Organizations
Not - For - Profit Organizations
Not - For - Profit Organizations
19-1
19
Accounting
For Nongovernment
Nonbusiness
Organizations: Colleges
And Universities, Hospitals
And Other Health Care
Organizations
Chapter
19-4
Nongovernment Nonbusiness Organizations (NNOs)
Chapter
19-5
Hierarchy of Reporting Standards (NNOs)
Chapter
LO 1 Source of accounting standards for NNOs.
19-6
Financial Reporting for Not-for-Profit
2. Statement of activities
3. Statement of cash flows
Chapter
19-7 LO 2 Basic statements for NNOs.
Fund Accounting
Chapter
19-8 LO 3 Basic funds used by NNOs.
Accrual Basis of Accounting
Chapter
19-9
Accounting for Current Funds
Chapter
19-11 LO 5 Assets whose use is limited.
Accounting for Current Funds
Chapter
19-12 LO 5 Assets whose use is limited.
Accounting for Current Funds
Chapter
19-13 LO 4 Current restricted vs. unrestricted funds.
Accounting for Current Funds
Chapter
19-16 LO 7 Explain how contributions are recorded by NNOs.
Contributions
Chapter
19-17
Contributions
Chapter
19-18
Contributions
Cash 700,000
Pledges Receivable 700,000
Chapter
19-19
Contributions
Donated Services
Recognized only if the services received:
1. Create or enhance nonfinancial assets, or
2. a. Require specialized skills,
b. Are provided by individuals possessing those
skills, and
c. Would need to be purchased if not provided
by donation.
Recorded as revenue or support with an amount equal to the revenue
recognized as an expense in the appropriate expense account.
Chapter
19-20 LO 8 Recording donated services.
Contributions
Chapter
19-23
Contributions
Chapter
19-25
LO 9 Funds used to account for PP&E.
Accounting for Plant Funds
Chapter
19-27
Accounting for Plant Funds
Exercise 19-8:
1. A transfer of $3,000,000 is made from the Endowment
Fund (Term) to the Unexpended Plant Fund.
Endowment Fund
Endowment fund balance 3,000,000
Cash 3,000,000
Exercise 19-8:
2. Construction is begun on the Political Science annex. Costs
of construction during the year amounted to $1,000,000, of
which $30,000 remained unpaid at the end of the year. (The
financial controller does not record transfers to the
Investment in Plant subgroup until a project has been
completed.)
Exercise 19-8:
3. By the end of the following year, the annex is completed
at an additional cost of $2,100,000. All costs have been paid.
Building 3,100,000
Work in process 3,100,000
Chapter
19-30
Accounting for Plant Funds
Exercise 19-8:
4. The completed building is recorded in the Investment in
Plant subgroup.
Chapter
19-31
Accounting for Plant Funds
Hospitals
Property, plant and equipment (PP&E) transactions
are accounted for in the General Fund.
Contributed resources restricted to acquire PP&E
are accounted for in a plant replacement and
expansion (restricted) fund.
Upon expenditure, the assets acquired and the related
fund balance are transferred to the General Fund.
Chapter
LO 9 Funds used to account for PP&E.
19-32
Accounting for Plant Funds
Chapter
19-34
LO 10 Endowment Funds.
Accounting for Endowment Funds
Chapter
19-35
Accounting for Endowment Funds
Cash 2,000,000
Revenue Contribution - Restricted 2,000,000
Chapter
19-36
Accounting for Endowment Funds
Investment 2,000,000
Cash 2,000,000
Chapter
19-37
Accounting for Endowment Funds
Cash 400,000
Due to General Fund 300,000
Due to Specific Purpose Fund 100,000
Chapter
19-38
Accounting for Endowment Funds
Chapter
19-39
Accounting for Endowment Funds
Cash 2,000,000
Chapter
19-40
Accounting for Investments
Chapter
19-41 LO 11 Accounting for Equity Investments.
Accounting for Loan Funds
Loans to:
Students and staff of colleges and universities,
Cash 100,000
Revenue – Contributions Restricted 100,000
Chapter
19-44
Accounting for Loan Funds
Chapter
19-46
Accounting for Loan Funds
Cash 16,300
Loans Receivable – Students 10,000
Loans Receivable – Faculty 5,000
Interest Income 1,300
Chapter
19-47
Accounting for Agency (Custodial) Funds
Chapter
19-48
Accounting for Annuity and Life Income Funds
Chapter
19-49 LO 13 Annuity or life income fund.
Issues Relating to Colleges and Universities
Charity care
Contractual allowances
Capitation revenues
Malpractice
Chapter
19-50 LO 14 Special reporting issues.
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Chapter
19-51