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Not-for-Profit Entities: Best Practices in Presentation and Disclosure, 5th Edition




Not-for-Profit Entities: Best Practices in Presentation and Disclosure, 5th Edition


ISBN: 978-1-948-30698-0 June 2019 160 Pages



This valuable resource provides financial statement presentation and disclosure examples illustrating U.S. GAAP compliance for the topics most frequently encountered by preparers of financial statements for not-for-profits (NFPs) by drawing from the audited financial statements of an assortment of NFP entities. 

Intended for use as a tool to help you create and verify the format and accuracy of your company's or clients' financial statements, this resource walks you through the most common presentations used by other nonprofits for challenges such as noncash gifts, donor-imposed restrictions, and functional expenses.

The 2019 edition illustrates the most important, immediate, and challenging disclosures, including:

  • Net asset classes and donor-imposed restrictions
  • Investments, derivatives, endowments, and UPMIFA
  • Liquidity and availability of resources
  • Liabilities, including split-interest agreements and pension plans
  • Contributions and revenue recognition, including grants, contracts, gifts in kind, interests in trusts, and other receivables
  • Analysis of expenses by function and nature
  • Fair value measurements and use of estimates
  • Income taxes and uncertain tax positions for tax-exempt entities
  • Measure of operations and joint costs

1 Statements of Financial Position .01-.23

Columnar Formats .05-.14

Layered Formats .15-.19

Selected Sections of the Statement .20-.23

2 Statements of Activities, Including Changes in Net Assets .01-.45

Columnar Arrangements .06-.26

Caption Sequences .27-.40

Other Matters .41-.45

3 Statements of Cash Flows .01-.09

Direct Method .05-.06

Indirect Method .07-.09

4 Statements of Functional Expenses .01-.11

Statement of Functional Expenses .04-.07

Expense Analysis Included in Notes to Financial Statements .08-.11

5 Disclosures—General .01-.74

Description of Entity and General Accounting Policies .03-.21

Contingencies and Other Uncertainties, Including Going Concern Questions .22-.39

Related Parties .40-.56

General Matters .40-.51

Mergers and Spinoffs .52-.55

Summarized Financial Data for a Component of the Entity .56

Use of Estimates .57-.58

Subsequent Events .59-.62

Comparative Prior-Period Information .63

Foreign Operations .64-.66

Accounting Changes .67-.70

Illustrative Management Statement of Responsibility .71-.74

6 Disclosures Related Primarily to the Statement of Financial Position .01-.130

Investments, Fair Value, and Endowments .03-.11

Disclosures Related to Derivative Instruments .12-.17

Fair Value Measurements .18-.23

Endowments and Investment Payout, Including the Total Return Concept .24-.32

Contributions Receivable .33-.48

Other Receivables .49-.54

Inventory and Prepaid Expenses .55-.60

Collections .61-.69

Fixed Assets .70-.79

Liquidity and Availability .80-.87

Liabilities .88-.116

Net Assets .117-.130

7 Disclosures Related Primarily to the Statement of Activities and Related Statements .01-.99

Measure of Operations .03-.08

Revenue Recognition .09-.13

Contributions Received, Including Government Grants .14-.29

Pass-Through Gifts .30-.35

Challenge Grants, Other Conditional Promises to Give, and Intentions to Give .36-.43

Contributions Other Than Cash and Marketable Securities .44-.50

Split-Interest Agreements, Including Related Assets and Liabilities .51-.57

Earned Income and Deferred Revenue .58-.67

Expenses .68-.80

Grants Awarded to Others .81-.87

Taxes and Tax-Exempt Status .88-.99

8 Financial Statements Prepared in Accordance With Special Purpose Frameworks .01-.05

9 Information Outside of the Financial Statements .01-.14