Chapter 11 - Solution Manual

958 405 35 subsequent measurement general liability

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958-405-35 Subsequent Measurement General > Liability for Promises to Give 958-405-35-1 If the present value of the amounts to be paid is used to measure fair value of an unconditional promise to give at initial recognition, in conformity with paragraphs 835-30-25-10 through 25-11, the discount rate shall be determined at the time the unconditional promise to give is initially recognized and shall not be revised, unless the promise to give is subsequently remeasured at fair value pursuant to the Fair Value Option Subsections of Subtopic 825-10. 958-405-45 Other Presentation Matters General > Liability for Promises to Give 958-405-45-1 The amortization of any discount related to unconditional promises to give shall be reported in the same functional classification of expenses in which the promise to give was initially reported. 958-405-50 Disclosure General > Liability for Promises to Give 958-405-50-1 In addition to disclosures required by Section 450-20-50, the notes to financial statements shall include a schedule of unconditional promises to give that shows the total amount separated into amounts payable in each of the next five years, the aggregate amount due in more than
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227 five years, and for unconditional promises to give that are reported using present value techniques, the unamortized discount. 958-405-60 Relationships General > Health Care Entities 958-405-60-1 For guidance for not-for-profit entities (NFPs) that have entered into settlement agreements with the U.S. government regarding allegations of Medicare fraud that impose an obligation on the entity to engage an independent review entity to test and report on compliance with Medicare requirements each year for five years, see Section 954-405-25. > Classification of Assets and Liabilities 958-210-45-4 A statement of financial position, including accompanying notes to financial statements, provides relevant information about liquidity , financial flexibility , and the interrelationship of an NFP's assets and liabilities. That information generally is provided by aggregating assets and liabilities that possess similar characteristics into reasonably homogeneous groups that include the effects of donor- imposed restrictions as well as other contractual restrictions. 958-210-45-5 Classifying and aggregating items with similar characteristics into reasonably homogeneous groups and separating items with differing characteristics is a basic reporting practice that increases the usefulness of information. For example, entities generally report individual items of assets in homogeneous groups, such as cash and cash equivalents; accounts and notes receivable from patients, students, members, and other recipients of services; inventories of materials and supplies; deposits and prepayments for rent, insurance, and other services; marketable securities and other investment assets held for long-term purposes; and land, buildings, equipment, and other long-lived assets used to provide goods and services. Likewise, cash collections of receivables from patients, students, or other service
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