Auditing and Accounting Guide
Not-for-Profit Entities, 2019
Published on 25. June 2019
Book
Paperback/Softback
784 pages
978-1-948306-82-9 (ISBN)
Description
A must-have resource for new FASB guidance
From financial reporting to revenue recognition to grants and contracts, you have a lot going on in the not-for-profit financial arena right now. Whether you're already an expert in NFP audit and accounting standards or just getting started, we've got the practical guidance you need.
This must-have resource for nonprofits accounting and auditing professionals is an essential reference which will assist you with the unique aspects of accounting and financial statement preparation and auditing for not-for-profit entities. The 2019 guide will help you do the following:
Understand and implement recent updates and changes, including those related to financial reporting, revenue recognition, and grants and contracts
Gain a full understanding of the accounting issues unique to not-for-profit entities
A must-have resource for accounting and auditing professionals who work with nonprofits, this essential reference will assist in the unique aspects of accounting and financial statement preparation and auditing for not-for-profit entities.
From financial reporting to revenue recognition to grants and contracts, you have a lot going on in the not-for-profit financial arena right now. Whether you're already an expert in NFP audit and accounting standards or just getting started, we've got the practical guidance you need.
This must-have resource for nonprofits accounting and auditing professionals is an essential reference which will assist you with the unique aspects of accounting and financial statement preparation and auditing for not-for-profit entities. The 2019 guide will help you do the following:
Understand and implement recent updates and changes, including those related to financial reporting, revenue recognition, and grants and contracts
Gain a full understanding of the accounting issues unique to not-for-profit entities
A must-have resource for accounting and auditing professionals who work with nonprofits, this essential reference will assist in the unique aspects of accounting and financial statement preparation and auditing for not-for-profit entities.
More details
Series
Language
English
Place of publication
New York
United States
Target group
Professional and scholarly
Dimensions
Height: 180 mm
Width: 154 mm
Thickness: 39 mm
Weight
1030 gr
ISBN-13
978-1-948306-82-9 (9781948306829)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Other editions
New editions
Book
09/2020
Wiley
€126.28
Article is exhausted; no reprint
Previous edition
Book
07/2018
Wiley
€112.85
Article exhausted; check for reprint
Person
Founded in 1887, the American Institute of Certified Public Accountants (AICPA) represents the CPA and accounting profession nationally and globally regarding rule-making and standard-setting, and serves as an advocate before legislative bodies, public interest groups and other professional organizations. The AICPA develops standards for audits of private companies and other services by CPAs; provides educational guidance materials to its members; develops and grades the Uniform CPA Examination; and monitors and enforces compliance with the accounting profession's technical and ethical standards.
The AICPA's founding established accountancy as a profession distinguished by rigorous educational requirements, high professional standards, a strict code of professional ethics, a licensing status and a commitment to serving the public interest.
The AICPA's founding established accountancy as a profession distinguished by rigorous educational requirements, high professional standards, a strict code of professional ethics, a licensing status and a commitment to serving the public interest.
Content
1 Introduction .01-.27
Scope .01-.12
GAAP for NFPs .13-.19
Fund Accounting and Net Asset Classes .20-.25
Other Resources for Financial Reporting by NFPs .26-.27
2 General Auditing Considerations .01-.150
Overview .01-.02
Purpose of an Audit of Financial Statements .03-.08
Terms of Engagement .09-.11
Audit Planning Considerations .12-.59
Use of Assertions in Assessment of Risks of Material Misstatement .60-.64
Risk Assessment Procedures .65-.88
Using Risk Assessment to Design Further Audit Procedures .89-.111
Evaluation of Misstatements Identified During the Audit .112-.114
Communication With Those Charged With Governance .115-.121
Completing the Audit .122-.149
Appendix A - Consideration of Fraud in a Financial Statement Audit .150
3 Financial Statements, the Reporting Entity, and General Financial Reporting Matters .01-.197
Introduction .01-.05
Statement of Financial Position .06-.28
Statement of Activities .29-.45
Statement of Cash Flows .46-.58
Comparative Financial Information .59-.61
Reporting of Related Entities, Including Consolidation .62-.125
Mergers and Acquisitions .126-.139
Collaborative Arrangements .140-.141
The Use of Fair Value Measures .142-.175
Financial Statement Disclosures Not Considered Elsewhere .176-.188
Auditing .189-.196
Supplement A - Flowcharts .197
4 Cash, Cash Equivalents, and Investments .01-.110
Cash and Cash Equivalents .01-.04
Investments Discussed in This Chapter .05-.10
Initial Recognition and Measurement of Investments .11-.12
Valuation of Investments Subsequent to Acquisition .13-.44
Investment Income and Expenses .45-.49
Unrealized and Realized Gains and Losses .50-.53
Investments Held as an Agent .54
Investment Pools .55-.61
Endowment Funds .62-.73
Financial Statement Presentation .74-.82
Disclosures .83-.94
Auditing .95-.109
Appendix A - Determining Fair Value of Alternative Investments .110
5 Contributions Received and Agency Transactions 01-.234
Introduction .01-.04
Distinguishing Contributions From Other Transactions .05-.57
Core Recognition and Measurement Principles for Contributions .58-.81
Additional Accounting Considerations for Certain Contributions .82-.171
Measurement Principles for Contributions Receivable .172-.204
Financial Statement Presentation .205-.207
Disclosures .208-.214
Auditing .215-.232
Appendix A - Excerpt From AICPA Financial Reporting White Paper Measurement of Fair Value for Certain Transactions of Not-for-Profit Entities .233
Appendix B - Technical Questions and Answers About Financially Interrelated Entities .234
6 Split-Interest Agreements and Beneficial Interests in Trusts .01-.95
Introduction .01
Types of Split-Interest Agreements .02-.03
Recognition and Measurement Principles .04-.45
Financial Statement Presentation .46-.53
Examples of Split-Interest Agreements .54-.87
Auditing .88-.93
Appendix A - Excerpt From AICPA White Paper Measurement of Fair Value for Certain Transactions of Not-for-Profit Entities .94
Appendix B - Journal Entries .95
7 Other Assets .01-.47
Introduction .01
Inventory .02-.11
Prepaid Expenses, Deferred Costs, and Similar Items .12-.16
Collections and Works of Art, Historical Treasures, or Similar Assets .17-.29
Goodwill .30-.32
Intangible Assets Other Than Goodwill .33-.37
Auditing .38-.47
8 Programmatic Investments .01-.71
Introduction .01-.07
Core Considerations for Accounting and Reporting .08
Loans .09-.52
Equity Instruments .53-.61
Programmatic Equity Investments That Are Consolidated .55
Programmatic Equity Investments Reported Using the Equity Method .56-.58
Guarantees .62
Concentrations of Risk .63
Presentation of Programmatic Investments .64-.69
Program-Related Investments of Private Foundations .70
Auditing .71
9 Property and Equipment .01-.47
Introduction .01-.02
Recognition and Measurement Principles .03-.32
Financial Statement Presentation .33-.38
Auditing .39-.47
10 Debt and Other Liabilities .01-.117
Introduction .01
Fair Value Measurement .02-.08
Municipal Bond Financing and Other Long-Term Debt .09-.87
Tax Liabilities .88
Deferred Revenue .89
Refunds Due to and Advances from Third Parties .90
Promises to Give .91-.95
Split-Interest Obligations .96
Amounts Held for Others under Agency Transactions .97
Revenue Sharing and Other Agreements .98
Exit or Disposal Activities .99
Guarantees .100-.101
Contingencies .102
Pension and Other Defined Benefit Postretirement Auditing .111-.115
Appendix A - Municipal Securities Regulation .116
Appendix B - Auditor Involvement with Municipal Securities Filings .117
11 Net Assets and Reclassifications of Net Assets .01-.58
Introduction .01-.02
Fiduciary Responsibilities to Meet Donor Restrictions .03-.08
Net Asset Classes .09-.11
Net Assets with Donor Restrictions .12-.22
Noncontrolling Interests .23-.25
Reclassifications of Net Assets .26
Expiration of Donor-Imposed Restrictions .27-.47
Disclosures .48-.54
Changing Net Asset Classifications Reported in a Prior Year .55
Auditing .56-.58
12 Revenues and Receivables from Exchange Transactions .01-.25
Introduction .01-.02
Difference between Revenues and Gains .03-.05
Recognition, Measurement, and Display of Revenue .06-.14
Receivables from Exchange Transactions .15-.17
Auditing .18-.24
Appendix A - Implementation Guidance for FASB Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) .25
13 Expenses, Gains, and Losses .01-.142
Introduction .01
Expenses .02-.06
Expense Recognition Issues .07-.34
Gains and Losses .35-.50
Functional Reporting of Expenses .51-.132
Income Taxes .133
Auditing .134-.139
Supplement A - Accounting for Joint Activities .139
Supplement B - Examples of Applying the Criteria of Purpose, Audience, and Content to Determine Whether a Program or Management and General Activity Has Been Conducted .140
Supplement C - Allocation Methods for Joint Costs .141
Supplement D - Examples of Disclosures .142
14 Reports of Independent Auditors .01-.30
Reports on Financial Statements .01-.02
Reports on Comparative Financial Statements and Presentation of Comparative Information .03-.08
Unmodified Opinions .09
Modified Reports and Departures from Unmodified Opinions .10
Going Concern .11
Reporting on Supplementary Information .12-.14
Special Considerations .15-.16
Reporting Under Other Technical Standards .17-.21
Reporting on Prescribed Forms .22-.25
Reports Required by Government Auditing Standards, the Single Audit Act Amendments of 1996, and the Uniform Guidance .26-.30
15 Tax and Regulatory Considerations .01-.74
Introduction .01-.03
Internal Revenue Service .04-.38
Income Tax Positions .39-.43
Deferred Tax Assets and Liabilities .44-.45
State and Local Regulations .46-.56
Securities Regulation .57-.60
Sarbanes Oxley and Governance Policies .61-.63
Executive Compensation .64-.67
Other Regulatory Activities .68-.70
Auditing .71-.74
16 Fund Accounting .01-.23
Introduction .01
Fund Accounting and External Financial Reporting .02-.05
Unrestricted Current (or Unrestricted Operating or General) Funds .06-.07
Restricted Current (or Restricted Operating or Specific-Purpose) Funds .08-.09
Plant (or Land, Building, and Equipment) Funds .10-.14
Loan Funds .15-.16
Endowment Funds .17-.19
Annuity and Life-Income (Split-Interest) Funds .20-.21
Agency (Or Custodian) Funds .22
Summary .23
Appendix
A FASB Accounting Standards Codification 958, Not-For-Profit Entities, Topic Hierarchy
B The New Revenue Recognition Standard: FASB ASC 606
C The New Leases Standard: FASB ASC 842
D Information Sources
E Overview of Statements on Quality Control Standards
F Schedule of Changes Made to the Text From the Previous Edition
Glossary
Index of Pronouncements and Other Technical Guidance
Subject Index
Scope .01-.12
GAAP for NFPs .13-.19
Fund Accounting and Net Asset Classes .20-.25
Other Resources for Financial Reporting by NFPs .26-.27
2 General Auditing Considerations .01-.150
Overview .01-.02
Purpose of an Audit of Financial Statements .03-.08
Terms of Engagement .09-.11
Audit Planning Considerations .12-.59
Use of Assertions in Assessment of Risks of Material Misstatement .60-.64
Risk Assessment Procedures .65-.88
Using Risk Assessment to Design Further Audit Procedures .89-.111
Evaluation of Misstatements Identified During the Audit .112-.114
Communication With Those Charged With Governance .115-.121
Completing the Audit .122-.149
Appendix A - Consideration of Fraud in a Financial Statement Audit .150
3 Financial Statements, the Reporting Entity, and General Financial Reporting Matters .01-.197
Introduction .01-.05
Statement of Financial Position .06-.28
Statement of Activities .29-.45
Statement of Cash Flows .46-.58
Comparative Financial Information .59-.61
Reporting of Related Entities, Including Consolidation .62-.125
Mergers and Acquisitions .126-.139
Collaborative Arrangements .140-.141
The Use of Fair Value Measures .142-.175
Financial Statement Disclosures Not Considered Elsewhere .176-.188
Auditing .189-.196
Supplement A - Flowcharts .197
4 Cash, Cash Equivalents, and Investments .01-.110
Cash and Cash Equivalents .01-.04
Investments Discussed in This Chapter .05-.10
Initial Recognition and Measurement of Investments .11-.12
Valuation of Investments Subsequent to Acquisition .13-.44
Investment Income and Expenses .45-.49
Unrealized and Realized Gains and Losses .50-.53
Investments Held as an Agent .54
Investment Pools .55-.61
Endowment Funds .62-.73
Financial Statement Presentation .74-.82
Disclosures .83-.94
Auditing .95-.109
Appendix A - Determining Fair Value of Alternative Investments .110
5 Contributions Received and Agency Transactions 01-.234
Introduction .01-.04
Distinguishing Contributions From Other Transactions .05-.57
Core Recognition and Measurement Principles for Contributions .58-.81
Additional Accounting Considerations for Certain Contributions .82-.171
Measurement Principles for Contributions Receivable .172-.204
Financial Statement Presentation .205-.207
Disclosures .208-.214
Auditing .215-.232
Appendix A - Excerpt From AICPA Financial Reporting White Paper Measurement of Fair Value for Certain Transactions of Not-for-Profit Entities .233
Appendix B - Technical Questions and Answers About Financially Interrelated Entities .234
6 Split-Interest Agreements and Beneficial Interests in Trusts .01-.95
Introduction .01
Types of Split-Interest Agreements .02-.03
Recognition and Measurement Principles .04-.45
Financial Statement Presentation .46-.53
Examples of Split-Interest Agreements .54-.87
Auditing .88-.93
Appendix A - Excerpt From AICPA White Paper Measurement of Fair Value for Certain Transactions of Not-for-Profit Entities .94
Appendix B - Journal Entries .95
7 Other Assets .01-.47
Introduction .01
Inventory .02-.11
Prepaid Expenses, Deferred Costs, and Similar Items .12-.16
Collections and Works of Art, Historical Treasures, or Similar Assets .17-.29
Goodwill .30-.32
Intangible Assets Other Than Goodwill .33-.37
Auditing .38-.47
8 Programmatic Investments .01-.71
Introduction .01-.07
Core Considerations for Accounting and Reporting .08
Loans .09-.52
Equity Instruments .53-.61
Programmatic Equity Investments That Are Consolidated .55
Programmatic Equity Investments Reported Using the Equity Method .56-.58
Guarantees .62
Concentrations of Risk .63
Presentation of Programmatic Investments .64-.69
Program-Related Investments of Private Foundations .70
Auditing .71
9 Property and Equipment .01-.47
Introduction .01-.02
Recognition and Measurement Principles .03-.32
Financial Statement Presentation .33-.38
Auditing .39-.47
10 Debt and Other Liabilities .01-.117
Introduction .01
Fair Value Measurement .02-.08
Municipal Bond Financing and Other Long-Term Debt .09-.87
Tax Liabilities .88
Deferred Revenue .89
Refunds Due to and Advances from Third Parties .90
Promises to Give .91-.95
Split-Interest Obligations .96
Amounts Held for Others under Agency Transactions .97
Revenue Sharing and Other Agreements .98
Exit or Disposal Activities .99
Guarantees .100-.101
Contingencies .102
Pension and Other Defined Benefit Postretirement Auditing .111-.115
Appendix A - Municipal Securities Regulation .116
Appendix B - Auditor Involvement with Municipal Securities Filings .117
11 Net Assets and Reclassifications of Net Assets .01-.58
Introduction .01-.02
Fiduciary Responsibilities to Meet Donor Restrictions .03-.08
Net Asset Classes .09-.11
Net Assets with Donor Restrictions .12-.22
Noncontrolling Interests .23-.25
Reclassifications of Net Assets .26
Expiration of Donor-Imposed Restrictions .27-.47
Disclosures .48-.54
Changing Net Asset Classifications Reported in a Prior Year .55
Auditing .56-.58
12 Revenues and Receivables from Exchange Transactions .01-.25
Introduction .01-.02
Difference between Revenues and Gains .03-.05
Recognition, Measurement, and Display of Revenue .06-.14
Receivables from Exchange Transactions .15-.17
Auditing .18-.24
Appendix A - Implementation Guidance for FASB Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) .25
13 Expenses, Gains, and Losses .01-.142
Introduction .01
Expenses .02-.06
Expense Recognition Issues .07-.34
Gains and Losses .35-.50
Functional Reporting of Expenses .51-.132
Income Taxes .133
Auditing .134-.139
Supplement A - Accounting for Joint Activities .139
Supplement B - Examples of Applying the Criteria of Purpose, Audience, and Content to Determine Whether a Program or Management and General Activity Has Been Conducted .140
Supplement C - Allocation Methods for Joint Costs .141
Supplement D - Examples of Disclosures .142
14 Reports of Independent Auditors .01-.30
Reports on Financial Statements .01-.02
Reports on Comparative Financial Statements and Presentation of Comparative Information .03-.08
Unmodified Opinions .09
Modified Reports and Departures from Unmodified Opinions .10
Going Concern .11
Reporting on Supplementary Information .12-.14
Special Considerations .15-.16
Reporting Under Other Technical Standards .17-.21
Reporting on Prescribed Forms .22-.25
Reports Required by Government Auditing Standards, the Single Audit Act Amendments of 1996, and the Uniform Guidance .26-.30
15 Tax and Regulatory Considerations .01-.74
Introduction .01-.03
Internal Revenue Service .04-.38
Income Tax Positions .39-.43
Deferred Tax Assets and Liabilities .44-.45
State and Local Regulations .46-.56
Securities Regulation .57-.60
Sarbanes Oxley and Governance Policies .61-.63
Executive Compensation .64-.67
Other Regulatory Activities .68-.70
Auditing .71-.74
16 Fund Accounting .01-.23
Introduction .01
Fund Accounting and External Financial Reporting .02-.05
Unrestricted Current (or Unrestricted Operating or General) Funds .06-.07
Restricted Current (or Restricted Operating or Specific-Purpose) Funds .08-.09
Plant (or Land, Building, and Equipment) Funds .10-.14
Loan Funds .15-.16
Endowment Funds .17-.19
Annuity and Life-Income (Split-Interest) Funds .20-.21
Agency (Or Custodian) Funds .22
Summary .23
Appendix
A FASB Accounting Standards Codification 958, Not-For-Profit Entities, Topic Hierarchy
B The New Revenue Recognition Standard: FASB ASC 606
C The New Leases Standard: FASB ASC 842
D Information Sources
E Overview of Statements on Quality Control Standards
F Schedule of Changes Made to the Text From the Previous Edition
Glossary
Index of Pronouncements and Other Technical Guidance
Subject Index