Non-Profit Accounting Ch 1-4
NFA note
Chapter 1
Government by statute or under not for profit corporation laws are governmental if they posses one more of the following chateristics: their officers are popularly elected or a controlling majority of their governing body is appointed or approved by governmental officals, they possess the power to enact and enforce a tax levy, they hold the power to directly issue debt whose interest is exempt from federal taxation, or they face the potential that a government might dissolve them unilaterally and assume their assets and liabilities.
Not for profit organization characteristic- receive contributions of significant amounts of resources from resource provider who do not expect equivalent value in return, operate for purposes other than to provide goods and services at a profit, and lack ownership interests like those of a business enterprise.
Not for profit organization do not enage in ownership-type transaction, such as issuing stock and paying dividend.
Not for profit organization are most time of voluntary health and welfare, health care, college / universities, and other.
Governmental Accounting standards board (GASB) setting body for state and local government.
Organizational purposes – they generally try to accumulate a reasonable surplus of financial resources to cushion against economic contraction to provide for emergency needs. But they do not operate to maximize inflow over outflows. The challenge to financial reporting leis also in demonstrating accountability for the resources entrusted to these organizations. When used in the broad sense of the term, accountability embraces not only probity nd legal compliance, but also efficiency in delivering services and effectiveness in accomplishing probram results. GASB want them to do outputs and outcomes reports.
Sources of Revune and relationship – government get most from taxation. Investors can sell equity securities.
Potential for longevity- because of the power to
Chapter 1
Government by statute or under not for profit corporation laws are governmental if they posses one more of the following chateristics: their officers are popularly elected or a controlling majority of their governing body is appointed or approved by governmental officals, they possess the power to enact and enforce a tax levy, they hold the power to directly issue debt whose interest is exempt from federal taxation, or they face the potential that a government might dissolve them unilaterally and assume their assets and liabilities.
Not for profit organization characteristic- receive contributions of significant amounts of resources from resource provider who do not expect equivalent value in return, operate for purposes other than to provide goods and services at a profit, and lack ownership interests like those of a business enterprise.
Not for profit organization do not enage in ownership-type transaction, such as issuing stock and paying dividend.
Not for profit organization are most time of voluntary health and welfare, health care, college / universities, and other.
Governmental Accounting standards board (GASB) setting body for state and local government.
Organizational purposes – they generally try to accumulate a reasonable surplus of financial resources to cushion against economic contraction to provide for emergency needs. But they do not operate to maximize inflow over outflows. The challenge to financial reporting leis also in demonstrating accountability for the resources entrusted to these organizations. When used in the broad sense of the term, accountability embraces not only probity nd legal compliance, but also efficiency in delivering services and effectiveness in accomplishing probram results. GASB want them to do outputs and outcomes reports.
Sources of Revune and relationship – government get most from taxation. Investors can sell equity securities.
Potential for longevity- because of the power to