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
