How to read nonprofit financial statements : a practical guide / Andrew Lang [and three others].

Format:

Book

Author/Creator:

Lang, Andrew S., author.

Language:

English

Subjects (All):

Nonprofit organizations--United States--Accounting.

Nonprofit organizations.

Financial statements--United States.

Financial statements.

Physical Description:

1 online resource (275 pages)

Edition:

Third edition.

Place of Publication:

Hoboken, New Jersey : Wiley, 2017.

Summary:

"Clear guidance with coverage of the new changes to the FASB standards How to Read Nonprofit Financial Statements clarifies FASB standards to help you quickly and easily understand the nonprofit's most important document. Expert authors help you navigate through the financial reports line by line, with clear explanation of FASB standards and their correct implementation. This new second edition has been updated to reflect recent updates to the standards, with insider guidance toward the changes that directly impact nonprofit financial statement preparation. The FASB's changes focus on the reporting model for the statement of activities, net asset classification, statement of cash flows, and disclosures, along with new footnote disclosures for improving statement relevance and understandability. This book explains both the new and existing standards with depth, clarity, and expert insight to give you a practical understanding of the nonprofit financial statement. Nonprofit accounting standards have remained more or less static for the past 20 years; recently, the FASB Nonprofit Accounting Committee agreed to a significant update, leaving organizations grasping for guidance toward interpretation and implementation. This book provides a much-needed resource for anyone parsing a nonprofit financial statement. Get line-by-line guidance to each part of the financial statement Assess financial information more quickly with deeper understanding Reference step-by-step instructions for complex documents Understand Financial Position, Activities, Cash Flow, and more The new standards are significant enough that even experienced nonprofit professionals would benefit from guidance, and the coverage in this book provides a versatile resource both for step-by-step instruction and quick reference. How to Read Nonprofit Financial Statements is your essential reference for clarity and understanding"-- Provided by publisher.

"The current nonprofit accounting standards have been in place for 20 years. Recently, the FASB nonprofit accounting committee (NAC) agreed to significantly update the standards for nonprofit financial reporting. These changes will be formalized and released to the industry in late 2015. In addition to walking readers line by line through the financial reports key to every nonprofit organization, this edition will include the new FASB standards with detailed a explanation of what they are and how to implement them correctly. The authors have deep knowledge of the FASB standards and forthcoming changes and will share their insider knowledge with readers. The new standards will focus on: 1) Reporting model for the statement of activities, 2.Net asset classification, 3.Statement of cash flows, 4.Financial statement disclosures and 5. New footnote disclosures for improving financial statement relevance and understandability"-- Provided by publisher.

Contents:

How to Read Nonprofit Financial Statements: A Practical Guide

Contents

Preface

Learning Objectives

Introduction

Chapter 1: Why You Need to Understand the Update to the Nonprofit Reporting Model

Chapter 2: Why Update the Nonprofit Reporting Model?

Chapter 3: Highlights of the Major Changes to the Nonprofit Reporting Model

Net Asset-Related Changes

Update to Net Asset Presentation

Disclosures of Board-Designated Net Assets

Update to Presentation of Underwater Endowments

Expirations of Capital Restrictions

Expense Reporting-Related Changes

Investment Return-Related Changes

Liquidity and Availability

Operating Measure

Cash Flow Statement

Summary of Provisions

ASU Provisions with an Accounting Effect

Effective Date of ASU

Chapter 4: What Is the Purpose of Financial Statements?

Chapter 5: Types of Financial Statements

Chapter 6: How to Read a Nonprofit Financial Statement

Chapter 7: Statement of Financial Position

Steps to Analyze the Statement of Financial Position

Chapter 8: Statement of Activities

Steps to Analyze the Statement of Activities

Chapter 9: Statement of Cash Flows

Steps to Analyze the Statement of Cash Flows

Chapter 10: Statement of Functional Expenses

Steps to Analyze the Statement of Functional Expenses

Chapter 11: Footnotes to Financial Statements

Chapter 12: Internal versus External (Audited) Financial Statements

Organization Management Statements

Audited Financial Statements

Chapter 13: The Independent Auditor's Report

What It Does (and Does Not) Mean to Be ``Clean´´

A Clean Opinion Always Contains the Same Information

Chapter 14: Other Types of Auditor Opinions

Chapter 15: Supplemental Information

Chapter 16: Reserves

Contextual Issues

Common Calculations of Reserves.

A More Precise and Conservative Definition of Reserves

Financial Assets

Chapter 17: Financial Statement Exercises

Chapter 18: Example Set 1

Exercise 1A: Working with Financial Statements

Exercise 1A: Answers

Exercise 1B: Working with Financial Statements

Exercise 1B: Answers

Chapter 19: Example Set 2

Exercise 2A: Working with Financial Statements

Exercise 2A: Answers

Exercise 2B: Working with Financial Statements

Exercise 2B: Answers

Chapter 20: Example Set 3

Exercise 3A: Working with Financial Statements

Exercise 3A: Answers

Exercise 3B: Working with Financial Statements

Exercise 3B: Answers

Chapter 21: Financial Analysis

Ratio Analysis

Going Beyond the Ratios

Chapter 22: Benchmarking

Types of Benchmarking

Chapter 23: Increasing Complexity in Nonprofit Financial Reporting

New Pronouncements Affecting Nonprofit Financial Statements

ASU 2014-09, Revenue from Contracts with Customers (Topic 606)

ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosures of Uncertainties about an Entity's Ability to Continue as a Going Concern

ASU 2015-07, Fair Value (Topic 820), Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Equivalent)

ASU 2016-02, Leases (Topic 842)

ASU 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities

Other Changes on the Horizon

Phase 2 of FASB's Project on Nonprofit Financial Statements

Revenue Recognition of Grants and Contracts by Not-for-Profit Entities

Chapter 24: Nonprofits Subject to Government Auditing Standards and a Single Audit under the Uniform Guidance

Glossary Prior to Effective Date of ASU 2016-14

Glossary Amendments Made Upon Adoption of ASU 2016-14

About the Authors.

BDO Institute for Nonprofit ExcellenceSM

Index

End User License Agreement.

Notes:

Includes index.

Description based on print version record.

ISBN:

1-118-97671-1

1-118-97670-3

OCLC:

979078563