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6 Cards in this Set
- Front
- Back
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How do you account for Donated Inventories? |
1. Optional to record or not
2. If choose to record, must meet NORMAL NPO recognition criteria: -FV can be reasonably estimated -Inventory used in the normal course of the organizations operations and would otherwise have been purchased |
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How do you account for inventories distributed/consumed at no charge or nominal charge |
Lower of cost or current replacement cost |
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What is the revenue recognition for Restricted fund method |
Restricted fund method - specialized type of fund accounting where funds are segregated into one or more restricted funds, an endowment fund and unrestricted fund.
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What is revenue recognition for deferral method? |
- Restricted contributions regarding expenses of future periods - deferred and recognized as revenue in period in which related expenses are incurred
-restricted contribution for the purchase of capital asset: i. That will be amortized - defer and amortize on the same basis ii. That will not be amortized - recognize as direct increases in net assets
-Restricted contributions for expenses of the current period should be recognized as revenue in the current period
-Endowment contributions - direct increase to net assets
-Other contributions - reported as revenue of the current period |
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How do you recognize donated goods or services |
-Optional to record. If you choose to record, can only do so when:
i. FV an be reasonably estimated, and ii. When the goods and services are used in the normal course of the organizations operations and would otherwise have been purchased |
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What is the criteria for Tangible capital assets held by NPO? |
- Record at costs similar to ASPE criteria
Exemption for small organization -criteria - average of annual revenues for current & preceding year is less than $500,000
- once criteria is met, even if you subsequently fall below $500,000 must continue to capitalize and depreciate |
