ch16 - Chapter 16 - Accounting for Colleges and...

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Chapter 16 - Accounting for Colleges and Universities 16-1 CHAPTER 16: ACCOUNTING FOR COLLEGES AND UNIVERSITIES OUTLINE Number Topic Type/Task Status (re: 14/e) Questions: 16-1 Restricted assets Explain New 16-2 Restricted gifts and grants Contrast Same 16-3 Net asset categories Distinguish Same 16-4 Endowments and split-interest agreements Contrast Same 16-5 Contributed services Compare New 16-6 Pledges Explain New 16-7 Collections Explain Same 16-8 Split-interest agreements Define and compare New 16-9 Revocable agreements Explain New 16-10 Performance measures Describe Same Cases: 16-1 Institutionally related foundations Analyze Exercise 16-5 16-2 Comparison of public vs. private universities Analyze New 16-3 UPMIFA—Internet case Research New Exercises/Problems: 16-1 Annual report Examine New 16-2 Various Multiple Choice Revised 16-3 Private university transactions JEs and FS 16-2 16-4 Public university transactions JEs and FS Revised 16-3 16-5 Public and private university transactions JEs New 16-6 Private university trial balance to FS Financial statements 16-4 16-7 Public university trial balance to FS Financial statements New
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Chapter 16 - Accounting for Colleges and Universities 16-2 CHAPTER 16: ACCOUNTING FOR COLLEGES AND UNIVERSITIES Answers to Questions 16-1. Restricted assets are those assets not available for current operating purposes. Instead, the restrictions placed on these assets by persons or entities outside the college or university makes them available for a long-term purpose. An example of such assets would be contributions made for the construction or acquisition of a capital asset. Restricted assets can be shown on the face of the financial statements after current assets or they can be disclosed in the notes to the financial statements. The reporting requirements for restricted assets are similar for private and public colleges and universities. 16-2. Net assets that are subject to limitations placed on them by persons or organizations outside the institution in nonexchange transactions are called restricted . Typically net assets of a college or university are restricted for research, scholarships and fellowships, loans, debt service, or acquisition of capital assets. In public colleges and universities restricted net assets are further distinguished by whether the net assets are nonexpendable or expendable. GASB standards provide additional guidance in accounting for nonexchange transactions. Under the FASB standards employed by private colleges and universities, restricted gifts are recorded as support in the period in which the gift is made, and then classified as to whether the contribution increases temporarily or permanently restricted net assets. As expenditures are made for the purpose or time period stipulated by the donor, then net assets are “released from restrictions” and treated as an addition to unrestricted net assets of the current period. 16-3. The FASB requires that private colleges and universities identify donor/contributor
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This note was uploaded on 11/29/2009 for the course ACCT 341 taught by Professor Burdan during the Fall '08 term at American.

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ch16 - Chapter 16 - Accounting for Colleges and...

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