The Requirements of Sfas
The Requirements of SFAS 116 and 117 and its aftereffect on the banking statements The Account of Banking Accounting Standards (SFAS) 116 and 117 are standards set for not- for-profit and non-governmental entities. The standards annual for contributions and banking account presentation (Granof, Khumawala, 2011). SFAS 116 defines how contributions are designated. Contributions can accept donor-imposed restrictions.
The accepted defines three types of designations: 1. Assuredly Belted – The asset is specific by the donor, the arch is assuredly restricted, but the assets is accessible for use. 2. Temporarily belted – The asset is belted by purpose and time. The donor places the restrictions on the asset. The donor may appeal the asset be acclimated for a defined purpose or time already the purpose or time has been accomplished brake is lifted. 3.
Unrestricted – If the donor does not abode any restrictions on the asset the asset is unrestricted. SFAS 117 clarifies the advertisement of contributions for not-for-profit organizations on their banking statements. The accepted requires three banking statements for not-for-profit entities: 1. Account of Banking Position – about a Balance Sheet 2. Account of Activities – SFAS 117 directs the revenues and costs on the account of activities focus on the alignment as a accomplished against alone funds.
Gains and losses accustomed on investments charge be burst out from alternative assets. 3. Account of Cash Flows Not-for-profit organizations charge to be accustomed with the changes that chronicle to SFAS 116 and 117 to be in acquiescence and to ensure the alignment is advertisement contributions correctly. References: Granof, Michael H. , Khumawala, Saleha B. , (2011). Government and Not-For-Profit Accounting (5th ed. ). River City, NJ: John Wiley & Sons, Inc.
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