Ch a11 - Chapter 11 - College and University Accounting -...

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Chapter 11 - College and University Accounting - Private Institutions C HAPTER 11 College and University Accounting - Private Institutions 11-1. A NSWERS WILL VARY DEPENDING ON STATEMENTS OBTAINED . 11-2. A. P UBLIC ( GOVERNMENT - OWNED ) COLLEGES AND UNIVERSITIES . 1. GASB 2. S TATEMENT OF N ET A SSETS , S TATEMENT OF R EVENUES , E XPENSES AND C HANGES IN N ET A SSETS , AND S TATEMENT OF C ASH F LOWS . 3. N ET ASSETS INVESTED IN CAPITAL ASSETS , NET OF RELATED DEBT , R ESTRICTED NET A SSETS , AND U NRESTRICTED N ET A SSETS . B. P RIVATE , NOT - FOR - PROFIT COLLEGES AND UNIVERSITIES . 1. FASB 2. S TATEMENT OF F INANCIAL P OSITION , S TATEMENT OF A CTIVITIES , AND S TATEMENT OF C ASH F LOWS . 3. U NRESTRICTED N ET A SSETS , T EMPORARILY RESTRICTED NET ASSETS , AND P ERMANENTLY RESTRICTED NET ASSETS . C. I NVESTOR - OWNED , PROPRIETARY SCHOOLS . 1. FASB 2. S TATEMENT OF F INANCIAL P OSITION (B ALANCE SHEET ), I NCOME S TATEMENT , S TATEMENT OF CHANGES IN EQUITY , AND S TATEMENT OF C ASH F LOWS . 3. P AID IN CAPITAL AND R ETAINED E ARNINGS . 11-3. A. T HE THREE NET ASSET CLASSIFICATIONS , REQUIRED BY FASB STANDARDS , ARE (1) U NRESTRICTED , (2) T EMPORARILY R ESTRICTED , AND (3) P ERMANENTLY R ESTRICTED . B. T HE FINANCIAL REPORTS REQUIRED BY FASB 117 ARE : (1) STATEMENT OF FINANCIAL POSITION , (2) STATEMENT OF ACTIVITIES , AND (3) STATEMENT OF CASH FLOWS . I N THIS CHAPTER , TWO STATEMENTS , THE STATEMENT OF UNRESTRICTED REVENUES , EXPENSES , AND OTHER CHANGES IN UNRESTRICTED NET ASSETS AND THE STATEMENT OF CHANGES IN NET ASSETS ARE SUBSTITUTED FOR THE STATEMENT OF ACTIVITIES , WHICH IS EXPRESSLY PERMITTED BY THE FASB. 11-1
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Chapter 11 - College and University Accounting - Private Institutions 11-3 (C ONTINUED ). C. E NDOWMENTS MAY BE CLASSIFIED AS PERMANENTLY RESTRICTED , TEMPORARILY RESTRICTED OR UNRESTRICTED : P ERMANENTLY R ESTRICTED : A N E NDOWMENT IS A PERMANENT FUND , A FUND THAT WILL NEVER BE EXPENDED , IN ACCORD WITH RESTRICTIONS PLACED BY THE DONOR OR GRANTOR . A N ENDOWMENT IS RECORDED IN THE PERMANENTLY RESTRICTED NET ASSET CLASSIFICATION . T EMPORARILY R ESTRICTED : A T ERM E NDOWMENT EXISTS WHEN A DONOR OR GRANTOR SPECIFIES THAT THE PRINCIPAL NOT BE EXPENDED FOR A CERTAIN PERIOD OF TIME OR UNTIL A SPECIFIED EVENT OCCURS , THEN RELEASED FOR EITHER UNRESTRICTED OR RESTRICTED PURPOSES . A TERM ENDOWMENT WOULD BE RECORDED IN THE TEMPORARILY RESTRICTED NET ASSET CLASS . U NRESTRICTED : A Q UASI -E NDOWMENT EXISTS WHEN A DONOR OR GRANTOR MAKES AN UNRESTRICTED CONTRIBUTION AND THE GOVERNING BOARD OF THE INSTITUTION DECIDES TO INVEST THE FUNDS , EITHER PERMANENTLY OR TEMPORARILY . Q UASI - ENDOWMENT FUNDS ARE RECORDED IN THE UNRESTRICTED NET ASSET CLASS , BUT MAY BE DISPLAYED SEPARATELY IN THAT CATEGORY . D.
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Ch a11 - Chapter 11 - College and University Accounting -...

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