Codification
Tenzin Sonam
Acct 5102 W
Codification Research System Written Assignment
Engagement Letter for Accounting Services:
February 19th, 2015
This letter is meant to state the responsibility of services that will be provided to your organization, City of Lakes, a public non-profit:
The services provided to your organization consist of a Summary of General Accepted Accounting Procedures (GAAP). This will outline the basic principles of GAAP that relates to public non-profits and how it may differ from for-profit businesses. Following, will be a basic overview of Accounting Practices that will help the reader gain insight of basic accounting principles. The goal of the section is to enable the individual to utilize the foundation when working to understand complex fundamental aspects of nonprofit accounting- described throughout the rest of this document.
The majority of the document constitutes the descriptions of the Journal Entries relating to the events that have occurred for City of Lakes. Each entry is described in detail while referencing the codification from the Financial Accounting Standards Board (FASB). This enables the individual to understand why certain accounts are used, and why journal entries are recorded the way it is.
Lastly, to wrap up the overview of our service, we have included for your organization, the Statement of Activities. This statement captures a summary of the various accounts utilized after transactions occurred throughout the year.
Summary
While basic accounting procedures still apply to public nonprofits, there are various aspects that differ from accounting methods of corporations. The General Accepted Accounting Procedures (GAAP) is the framework that outlines the standards and rules for accounting. The Financial Accounting Standards Board is a public nonprofit with the objective to establish and improve GAAP standards. FASB notes the various different accounting procedures for both corporations and nonprofits while showing how
Acct 5102 W
Codification Research System Written Assignment
Engagement Letter for Accounting Services:
February 19th, 2015
This letter is meant to state the responsibility of services that will be provided to your organization, City of Lakes, a public non-profit:
The services provided to your organization consist of a Summary of General Accepted Accounting Procedures (GAAP). This will outline the basic principles of GAAP that relates to public non-profits and how it may differ from for-profit businesses. Following, will be a basic overview of Accounting Practices that will help the reader gain insight of basic accounting principles. The goal of the section is to enable the individual to utilize the foundation when working to understand complex fundamental aspects of nonprofit accounting- described throughout the rest of this document.
The majority of the document constitutes the descriptions of the Journal Entries relating to the events that have occurred for City of Lakes. Each entry is described in detail while referencing the codification from the Financial Accounting Standards Board (FASB). This enables the individual to understand why certain accounts are used, and why journal entries are recorded the way it is.
Lastly, to wrap up the overview of our service, we have included for your organization, the Statement of Activities. This statement captures a summary of the various accounts utilized after transactions occurred throughout the year.
Summary
While basic accounting procedures still apply to public nonprofits, there are various aspects that differ from accounting methods of corporations. The General Accepted Accounting Procedures (GAAP) is the framework that outlines the standards and rules for accounting. The Financial Accounting Standards Board is a public nonprofit with the objective to establish and improve GAAP standards. FASB notes the various different accounting procedures for both corporations and nonprofits while showing how