F8

Salaries, rent, utilities, interest expense, grant, depreciation, professional fees

Natural

What do you add to the denominator for convertible preferred stock

Number of shares associated with the assumed conversion

Split interest agreements are estimated based on

PV of estimate future contributiosn

What do you add to the numerator for convertible preferred stock?

Preferred dividends subtracted from net income

noncumulative preferred stock

Preferred stock on which the right to receive dividends is lost for any period when dividends are not declared. - use dividends declared

cumulative preferred stock

Preferred stock on which undeclared dividends accumulate until paid; common stockholders cannot receive dividends until cumulative dividends are paid.

Three sources of revenue for NFP

Revenue from exchange transactions Contributions received Cash contributions

Conditional promises

Revenue when earned A conditional promise to give is a transaction that depends on the occurrence of a future and uncertain event. Recognition does not occur until the conditions are substantially met

What does SOME criteria mean?

Specialized skills are required and possessed by the donor Otherwise needed by the organization Measurable Easily

______ is considered to be a cash equivalent item so purchasing the bill merely changes the form of cash held, it does not change the cash position of the entity. Thus, the purchase is NOT reported

US Treasury Bill

What are the two types of net assets?

With donor restrictions, without donor restrictions

If the direct method is used to present cash flows from operating activities, the indirect method must also be

presented in the footnotes

Unconditional promises

recognized when pledge is received, recorded at FV when promise is made

Cash contributions recognize revenue when

recognized when received

Member ship fee revenue

revenue from exchange transactions

Patient service revenue

revenue from exchange transactions

Student tuition and fees revenue

revenue from exchange transactions

Contributions received recognized revenue when

revenue in period received

Revenue from exchange transactions recognizes revenue when ___

revenue when realized or realizable and earned

Donor contributions of trusts--benefits share with other beneficiaries

split interest agreements

3 required NFP FS

statement of FS position (BS), statement of activities (IS), statement of cash flows

_____ do not enter into the calculated of basic EPS.

stock options

What are net assets with DR?

subject to specific, externally imposed limitations made by donor

Types of promises to give (pledge) (4)

unconditional promises, conditional promises, multi-year pledge, placed-in service approach

Placed in service approach pledge

used in the absence of specific donor restrictions, report expiration of restrictions on contributions

Under IFRS, interest received (dividends) can be reported as

· operating or investing cash flow

· Basic EPS formula

Basic EPS = (Net Income - Preferred Dividends) / Wtd. Avg. # of Shares Outstanding

NFP focus on FS

Basic information of the organizations as a whole

JE: Conditional promises -- good faith deposit

DR Cash CR Refundable advance (liability)

JE: Donated services if SOME criteria is met

DR: Exp CR: contributions -- without restrictions

JE: reclassification of restrictions use of resources

DR: Program expense CR: Program revenue

JE: Reclassification of restrictions for satisfying restriction

DR: satisfaction of program restriction -- donor restriction CR: Satisfaction of program restriction -- without donor restriction

proceeds from the exercise of stock options, warrants, and their equivalents will be used by the company to repurchase treasury shares at the prevailing market price, resulting in an incremental increase in shares outstanding

Dilutive treasury stock method

Gifts in kind are recognized at

FV

Split interest agreements are measured at

FV

Donated services are recorded at ____ if ___ criteria is met

FV, SOME

Proceeds from issuing bonds, notes, mortgage are reported in ___ section of CF

Financing

Repayments of amounts borrowed are reported in ___ section of CF

Financing

Restricted contributions for acquiring, constructing or improving PPE are reported in ___ section of CF

Financing

Restricted contributions for increasing or decreasing endowment fund are reported in ___ section of CF

Financing

Stock issuance CF section

Financing inflow

What reporting expense category are program and support services?

Function

Education, research, patient care, labor negotiations, training, child care

Function; program

Management and general, fundraising, membership development

Function; support service

Examples of NFP

Health care, educational, voluntary health & welfare , cemetery, fraternal, labor unions

Assumes that securities were converted to common stock at the beginning of the period

If converted method

Investments in PPE are reported in ___ section of CF

Investing

Proceeds from sale of art are reported in ___ section of CF

Investing

Proceeds from sale of assets are reported in ___ section of CF

Investing

Multiyear pledges is recorded at ____

NPV - difference between previously recorded PV and current amounts collected is recognized as contribution revenue not interest income

Amortization of discounts was originally subtracted to get to net income so it ______ to operating for an indirect method

added

Qualitative disclosures in the statement of net position

assessing liquidity, manages liquid resources

Components of statement of FS position

assets, liabilities, net assets

Quantitative disclosures in the statement of net position

availability of liquid resources affect by nature, external and internal limits

In a complex capital structure, ____ must be presented for income from continuing operations and net income.

basic and diluted EPS

Cash contributions received categories (7)

cash, promises to give (pledge), split interest agreements, donated services, donated collection items, donated materials, gifts in kind

Components of statement of activities

change in total net assets change in net assets with DR change in net assets without DR

How do you classify an expense that is both a program and support service?

combine and allocate cost

EPS for income ________ and for net income must be presented on the face of a public company's income statement.

continuing operations

Unconditional transfer of cash or assets to a new owner in a manner thar is voluntary and is nonreciprocal

contributions

Classification of donor-imposed restrictions met in the same fiscal year received

contributions without donor restrictions

Using the indirect method, gain from the sale of used equipment for cash should be reported in operating activities as a ___ from income

deduction

If the entity reports a ______ the entity presents the basic and diluted per share amounts for those items either on the face of the IS or in the notes to the FS.

discontinued

Attorney duties, doctor duties, volunteers to fill a BUDGETED position are examples of what cash contribution?

donated services

Split interest agreements are classified as ___ net assets

donor restricted

Users of NFP FS

donors, members, creditors

Under IFRS, dividends paid may be reported in either

either operating cash flow or in financing cash flow.

Shares issuable upon the ______ are not considered contingent shares as the option holder is required to pay the strike price to exercise the options

exercise of a stock option

Paid dividends CF section

financing

Expense categories in the statement of activities

function and nature

Donated investments are classified as what type of cash contribution?

gifts in kind

Dilutive only if average price is ___ than strike/exercise price

greater than -- in the money

Convertible bonds and preferred stock use ___ method

if converted

Gains received from contributions is

incidental to purpose

Contributions are either classified as ___ or___

increase in net assets without DR or increase in net assets DR

Revenue from exchange transactions is classified as an ___ to net assets __ donor restrictions

increase; without

What do you add to the numerator using the if converted method for convertible bonds?

interest expense, net of tax, due to the assumed conversion of bonds to commons stock

The sale of a building would result in cash inflow from

investing

Loans to other entities and the consequent collection of the loans are reflected in the

investing activities section

Acquisition of long-lived assets

net assets with donor restrictions

Contributions to be invested for a specified period and purpose

net assets with donor restrictions

Contributions to support a particular operating activity

net assets with donor restrictions

Board designated funds

net assets without donor restrictions

Contributions to finance general operations

net assets without donor restrictions

Fees from rendering services

net assets without donor restrictions

should cash flow per share be disclosed?

no

What do you add to the denominator using the if converted method for convertible bonds?

number of common shares associated with the assumed conversion

Treasury stock method: addition shares outstanding formula

number of shares - [number of shares x exercise price/average market price]

Cash payment to suppliers and employees are reported in ___ section of CF

operating

Charitable contributions are reported in ___ section of CF

operating

Contributions of unrestricted revenue embarked (BOD) for construction/purchase of long-lived asset is reported in ___ section of CF

operating

Gross receipts are reported in ___ section of CFU

operating

Payment for settlement of lawsuit are reported in ___ section of CF

operating

Proceeds from sale of financial assets not restricted are reported in ___ section of CF

operating

Received dividends CF section

operating

Refunds received are reported in ___ section of CF

operating

Unrestricted resources are reported in ___ section of CF

operating

Under IFRS, interest paid is either

operating or financing cash flow

Components of statement of cash flow

operating, investing, financing

Revenue received from contributions is

part of ongoing major or central activities