Statements of Financial Accounting Standards (SFAS) 116 and 117 Executive Summary

parameters of Financial story Standards (SFAS) 116 and 117 Executive Summary According to the University of capital of Arizona (2007), record no. 116 addresses Accounting for Contributions Received and Contributions Made and line nary(prenominal) 117 addresses Financial argumentation of nary(prenominal)-for-Profit Organizations. These two disputations show how non-profit organizations identify their contributions and how their contributions ar presented on financial reports. This summary will be assessing the requirements of Statement of Financial Accounting Standards (SFAS) 116 and 117 and how it impacts the financial statements. The Statement No. 116 addresses Accounting for Contributions Received and Contributions Made, contributions consist of gifts of cash, marketable securities, property and equipment, utilities, supplies, nonphysical assets (such as patents and copyrights), and the services of professionals and skilled workers (University of Phoenix, 2007, p. 490). These contributions have to be accounted for at comme il faut value, unless their is a particular collection or contributed service. Statement No.

116 requires not-for-profit organizations to: -- bed between contributions received that increase permanently restricted sack assets, temporarily restricted assoil assets, and nonsensitive net assets -- apprehension of the expiration of donor-imposed restrictions -- disclosures for collection items not capitalized and for expediency of contributed services and promises to split (FINANCIAL ACCOUNTING STANDARDS BOARD, 2008). Statement No. 117 consists of luxuriant information round the generally! accepted accounting principles with visualise to how contributions are describe on financial statements. Statement No. 117 requires not-for-profit organizations to: -- to provide a statement of financial position -- a statement of activities -- a statement of cash flows. -- amounts for the organizations total assets, liabilities, and net assets in a statement of financial position --...If you indispensability to get a full essay, collection it on our website: BestEssayCheap.com

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