Mandatory transfers may be specified to be made from unrestricted or from restricted current funds. Nonmandatory Transfers . This category includes those transfers from the Current Funds group to other fund groups made at the discretion of the governing board to serve a variety of objectives. It also may include the retransfer of resources back to current funds. H. Revenue and Support from Fund-Raising Events The costs incurred by VHWOs and ONNOs in carrying out public support fund-raising events are deducted from gross contributions received and only the net funds provided by the event are reported as support revenue in the financial statements. VII CONTRIBUTIONS Contributions include gifts of cash, pledges (promises to give cash or other assets), donated services, and gifts of noncash assets. A. Pledges Pledges are signed commitments to contribute specific amounts of money to an organization on a future date or in installments. They are recorded as revenues when a promise to give is nonrevocable and unconditional, at the present value of the expected receipts. All NNOs should establish an allowance for uncollectible pledges.
Chapter 19 B. Donated Services: Some of the operations and activities of NNOs may be carried out by volunteers who donate their time and expertise. Contributions of services are recognized only if the services received (1) Create or enhance nonfinancial assets or (2) a) require specialized skills, b) are provided by individuals possessing those skills, and c) would need to be purchased if not provided by donation. C. Donated Collection Items Contributions of works of art, historical treasures, and similar assets are not capitalized if (a) the donated items are added to collections held for public exhibition, education, or research in furtherance of public service rather than financial gain; (b) the donated items are protected, cared for, and preserved; and (c) organizational policy requires proceeds from any future sale of the items be used to acquire other items for collections. D. Donor-imposed Restricted Contributions Donor-imposed restrictions limit the use of assets that are received. Some restrictions limit the organization’s ability to sell the asset. VIII ACCOUNTING FOR PLANT FUNDS Used to account for The property, plant and equipment owned by the organization and the net investment. The accumulation of financial resources for the acquisition or replacement of property, plant and equipment. The acquisition and disposal of property, plant and equipment. Liabilities relating to the acquisition of property, plant and equipment. Depreciation expense and accumulated depreciation. A. College and universities Colleges and universities also account for the accumulation of financial resources to service-related indebtedness in the Plant Fund. All types of NNOs are required by generally accepted accounting principles to record depreciation expense.
You've reached the end of your free preview.
Want to read all 7 pages?