Description/Scope
Skill Level Time Estimate Materials Equipment-Tools Library Resources Pre-requisite Knowledge FASB GAAP & Dbl Entry Acctg
Purpose:
Learn the compliance standards regarding accounting for contributions and charity.Who This Applies to:
Both the charity and the entity making the donation.When to Perform:
Every Financial StatementSpecial Circumstances: Variance from reporting standards subjects the reporting entity to possible civil causes actions.
Why This Is Important: Making a proper accounting is important for any presentation to a non-management, non-owner entity.
General Benefits 7 Objectives: Text
This entire site is for educational or informational purposes only. You are not to use the forms, concepts, strategies, or knowledge without assistance from a professional. The author, the corporation, the ISP, Bob Parrish CPA, Bob Parrish CPA, P.C. or other parties related to those or this site do not guarantee or warrantee in any manner the suitability, usefulness, accuracy, timeliness, or results of any portions of this site, nor the links contained in this site which link to other areas. At times, information is taken from other sources and is believed to be accurate, but no verification or confirmation is performed. Furthermore, if any federal or state law invalidates a portion of this disclaimer, the other portions still apply. In addition, any allegations or actions are restricted to arbitration only and must be arbitrated by the Better Business Bureau in Sarasota Florida. Reading of these pages constitutes complete acceptance and agreement with all disclaimer provisions on all pages of this site. .......
Thursday, February 22, 2007 11:45 AM
Law (commentary and citation)
Regs (commentary and citation)
Cases (commentary and citation)
Summary of Statement No. 116 FASB
Accounting for Contributions Received and Contributions Made
(Issued 6/93)
Summary
This Statement establishes accounting standards for contributions and applies to
all entities that receive or make contributions. Generally, contributions
received, including unconditional promises to give, are recognized as revenues
in the period received at their fair values. Contributions made, including
unconditional promises to give, are recognized as expenses in the period made at
their fair values. Conditional promises to give, whether received or made, are
recognized when they become unconditional, that is, when the conditions are
substantially met.
This Statement requires not-for-profit organizations to distinguish between contributions received that increase permanently restricted net assets, temporarily restricted net assets, and unrestricted net assets. It also requires recognition of the expiration of donor-imposed restrictions in the period in which the restrictions expire.
This Statement allows certain exceptions for contributions of services and works of art, historical treasures, and similar assets. Contributions of services are recognized only if the services received (a) create or enhance nonfinancial assets or (b) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. Contributions of works of art, historical treasures, and similar assets need not be recognized as revenues and capitalized if the donated items are added to collections held for public exhibition, education, or research in furtherance of public service rather than financial gain.
This Statement requires certain disclosures for collection items not capitalized and for receipts of contributed services and promises to give.
This Statement is effective for financial statements issued for fiscal years
beginning after December 15, 1994, except for not-for-profit organizations with
less than $5 million in total assets and less than $1 million in annual
expenses. For those organizations, the Statement is effective for fiscal years
beginning after December 15, 1995. Earlier application is encouraged. This
Statement may be applied either retroactively or by recognizing the cumulative
effect of the change in the year of the change. The provisions for recognition
of expirations of restrictions may be applied prospectively.
Status
Issued: June 1993
Effective Date: For fiscal years beginning after December 15, 1994
Affects: No other pronouncements
Affected by: No other pronouncements
Other Interpretive Pronouncement: FIN 42 (Superseded by FAS 136)
Other Interpretive Release:
FASB Highlights, "Time for a Change-Implementing
FASB Statements 116 and 117," January 1995
Abbreviations for Accounting Pronouncements
FAS - FASB Statements
FIN - FASB Interpretations
FTB - FASB Technical Bulletins
APB - APB Opinions
AIN - AICPA Interpretations
ARB - Accounting Research Bulletins
CON - FASB Concepts
EITF - EITF Issues
Q&A - FASB Implementation Guides
§§§ Law §§§
§274(d)
§§§ Regs §§§
§§§ Cases §§§
This is about Activity Based Taxplanning - maximizing deductions, minimizing cash outlay and maximizing the amount of cash retained and the net worth. Activity Based Taxplanning (ABT) is a methodology developed by Bob Parrish CPA, that assists people with the tax issues by focusing on the activity (or actions - events) that are being undertaken or contemplated (or have already taken place). The, the research is compiled from the myriad of sources to help you complete the activity with the least tax cost, while maintaining compliance the the tax laws, other laws and regulations and place yourself in a position to protect your objectives.
Tax is a subject that many view in order to cut costs. Taxes are a cost just as any other cost. It happens this cost is somewhat intangible and is defined by legislation without a tangible item to view and control. The money is spent and the control of the expenditure is more appropriately administered by someone trained in the law.
This is about Activity Based Costing - methods to cut costs, management accounting, management information systems, decision support systems - in general about being a manager.
Entrance Interview
Exit Interview
From Banking Records
From Customer Records
From Signed Documents
From Your Other Business, or Financial Records
From Corporation or Organization Records (meetings, etc.)
What to do:
Assistance - What to do
Forms - Checklists - Etc.
Financial Statement Presentation
Notes to Financial Statements
How to Make Entries
What Kind of Records to Keep
Bookkeeping Methods - Cash, Accrual and Other
How the Business Entity Affects the Recording
Sole Proprietor
Corporation - C & S
Partnerships - General, Limited, Limited Liability Company, Registered Limited Liability Partnership or Company
Trusts
Tax Exempt
Compliance Checklist
Action Checklist
Alerts & Dangers - Risks
Asset Protection
Your Defense
