principlesofaccounting050818 - Application of Principles of Accounting and Financial Reporting To Public Telecommunications Entities May 2005 Edition

principlesofaccounting050818 - Application of Principles of...

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Application of Principles of Accounting and Financial Reporting To Public Telecommunications Entities May 2005 Edition
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Application of Principles of Accounting and Financial Reporting To Public Broadcasting Entities i 1 INTRODUCTION .......................................................................................... 2 1.1 Background .................................................................................................. 2 1.2 Overview ...................................................................................................... 2 2 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES FOR PUBLIC BROADCASTING ENTITIES ....................................................................... 5 2.1 Application and Hierarchy of GAAP .......................................................... 5 2.2 Application of FASB or GASB by a Public Broadcasting Entity ............... 8 2.3 Organizations That Are Not Discrete Legal Entities ................................ 10 3 ACCOUNTING AND REPORTING FOR PUBLIC BROADCASTING ENTITIES FOLLOWING FASB .................................................................. 12 3.1 Overview ................................................................................................... 12 3.1.1 Accrual Basis of Accounting ............................................................ 12 3.1.2 AICPA Audit and Accounting Guide Not-for-Profit Organizations ..12 3.2 Financially Interrelated Organizations ..................................................... 14 3.2.1 Investments in For-Profit Majority Owned Subsidiaries .................... 15 3.2.2 Investments in For-Profit Entities with 50 Percent or Less Voting Interest ......................................................................... 17 3.2.3 Financially Interrelated Not-for-Profit Organizations ........................ 17 3.3 Contributions ............................................................................................. 20 3.3.1 Promises to Give (Pledges) ............................................................... 27 3.3.2 Materials, Supplies, Facilities, and Property ..................................... 29 3.3.3 Volunteer Services Not Requiring Specialized Skills ........................ 32 3.3.4 Services That Create or Enhance Non-Financial Assets or That Require Specialized Skills ........................................................ 32 3.3.5 Advertising and Promotion ............................................................... 36 3.3.6 Indirect Administrative Support ....................................................... 37 3.4 Transfers .................................................................................................... 38 3.4.1 Government Transfers ...................................................................... 38 3.4.2 Contributions Raised or Held for Others ........................................... 39 3.5 Fundraising Costs ...................................................................................... 39 3.5.1 Accounting for Fundraising Costs .................................................... 42 3.5.2 Allocation of Fundraising Costs ....................................................... 42
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Application of Principles of Accounting and Financial Reporting To Public Broadcasting Entities ii 3.6 Investments ................................................................................................ 44 3.6.1 Determining Fair Value .................................................................... 44 3.6.2 Income ............................................................................................. 45 3.6.3 Net Asset Classification ................................................................... 45 3.6.4 Financial Reporting .......................................................................... 46 3.6.5 Disclosure Requirements .................................................................. 47 3.7 Program Production .................................................................................. 49 3.7.1 Independently Funded Program Production ...................................... 49 3.7.2 Productions Not Independently Funded ............................................ 56 3.8 Financial Reporting for a Not-for-Profit Public Broadcasting Entity ..... 58 3.8.1 Overview of Reporting Requirements ............................................... 58 3.8.2 Purpose and Required Components of Financial Statements ............. 58 3.8.3 Comparative Financial Statements .................................................... 59 3.8.4 Statement of Financial Position ........................................................ 59 3.8.5 Statement of Activities ..................................................................... 68 3.8.6 Statement of Cash Flows .................................................................. 75 3.8.7 Reporting Expenses by Functional Classification ............................. 84 3.8.8 Reporting Expenses by Natural Classification .................................. 92 3.8.9 Notes to Financial Statements ........................................................... 95 3.8.10 Summary of Significant Accounting Policies .................................... 95 3.9 Example Financial Statements for a Not-for-profit Public Broadcasting Entity ................................................................................. 110 4 ACCOUNTING AND REPORTING FOR PUBLIC BROADCASTING ENTITIES FOLLOWING GASB ............................................................... 118 4.1 Overview .................................................................................................. 118 4.1.1 Basis of Accounting ....................................................................... 120 4.1.2 Reporting Under GASBS Nos. 34 and 35 ....................................... 120 4.1.3 AICPA Audit and Accounting Guide Audits of State and Local Government Units ................................................................. 121 4.2 Fund Accounting ...................................................................................... 123 4.2.1 Proprietary Funds ........................................................................... 124 4.2.2 Governmental Funds ...................................................................... 125 4.2.3 Fiduciary Funds .............................................................................. 126 4.3 Financially Interrelated Organizations ................................................... 127 4.4 Cash and Investments .............................................................................. 129 4.4.1 Deposits and Investments, including Repurchase Agreements ........ 129 4.4.2 Governmental External Investment Pools ....................................... 130
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Application of Principles of Accounting and Financial Reporting To Public Broadcasting Entities iii 4.5 Contributions ........................................................................................... 132 4.5.1
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  • Spring '12
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  • Balance Sheet, ........., International Financial Reporting Standards, Financial Accounting Standards Board, Public Broadcasting Entities

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