How to Read Nonprofit Financial Statements: A Practical Guide

ISBN-13: 9781118976692 / Angielski / Miękka / 2017 / 272 str.

Andrew Lang; Tammy Ricciardella; Lee Klumpp

Opis

EXPERT GUIDANCE ON HOW TO READ, INTERPRET, AND USE NONPROFIT FINANCIAL STATEMENTS--UPDATED TO INCLUDE THE NEW FASB STANDARD FOR NONPROFIT FINANCIAL REPORTING Whether you're a nonprofit executive unfamiliar with the language of financial statements or a seasoned pro, this book is the only guide you'll need to correctly interpret those critical documents, refresh your skills and familiarize yourself with the new FASB nonprofit reporting standards. The intent behind the recent FASB accounting standards update was to improve the clarity and usefulness of nonprofit financial statements. But making sense of those statements can still be tough for the uninitiated. Accountants and non-accountants who use and prepare nonprofit financial statements need guidance on how to interpret and implement these new FASB standards. Written for both audiences, this book:

• Clearly defines accounting terminology and concepts, while offering numerous examples of financial statements reflecting both the old and new FASB standards

• Steers you, line-by-line, through financial reports, providing in-depth explanations of the differences between the old and new standards

• Provides numerous illustrations to help you quickly feel at home with the format of nonprofit financial statements

• Offers exercises to help you gain insight into the core concepts of nonprofit financial statements and reinforce your command of those concepts

In addition to the new FASB standards, this expanded edition includes:

• A new chapter on reserves, a long-standing challenge for nonprofits

• A new section on general financial analysis, outlining what financial statement readers should look for to stay informed and satisfy their responsibility regardless of their role

• A new chapter on benchmarking to help nonprofits measure performance against industry peers

How to Read Nonprofit Financial Statements, Third Edition is an invaluable resource for anyone who reads, interprets, or prepares these all-important documents.

Spis treści

Preface vii

Learning Objectives ix

Introduction xi

Chapter 1 Why You Need to Understand the Update to the Nonprofit Reporting Model 1

Chapter 2 Why Update the Nonprofit Reporting Model? 3

Chapter 3 Highlights of the Major Changes to the Nonprofit Reporting Model 5

Chapter 4 What Is the Purpose of Financial Statements? 11

Chapter 5 Types of Financial Statements 13

Chapter 6 How to Read a Nonprofit Financial Statement 15

Chapter 7 Statement of Financial Position 17

Chapter 8 Statement of Activities 19

Chapter 9 Statement of Cash Flows 23

Chapter 10 Statement of Functional Expenses 25

Chapter 11 Footnotes to Financial Statements 27

Chapter 12 Internal versus External (Audited) Financial Statements 29

Chapter 13 The Independent Auditor s Report 31

Chapter 14 Other Types of Auditor Opinions 35

Chapter 15 Supplemental Information 37

Chapter 16 Reserves 39

Chapter 17 Financial Statement Exercises 43

Chapter 18 Example Set 1 45

Chapter 19 Example Set 2 101

Chapter 20 Example Set 3 157

Chapter 21 Financial Analysis 223

Chapter 22 Benchmarking 227

Chapter 23 Increasing Complexity in Nonprofit Financial Reporting 231

Chapter 24 Nonprofits Subject to Government Auditing Standards and a Single Audit under the Uniform Guidance 235

Glossary Prior to Effective Date of ASU 2016–14 241

Glossary Amendments Made upon Adoption of ASU 2016–14 247

About the Authors 251

Index 255

O autorze

ANDREW S. LANG, CPA, Potomac, MD, is President of LangCPA Consulting.

WILLIAM D. EISIG, CPA, McLean, VA, is Atlantic Managing Partner BDO USA, LLP and Executive Director of the BDO Institute for Nonprofit Excellence^SM.

LEE KLUMPP, CPA, CGMA, McLean, VA, is the National Nonprofit & Education Industry Group Audit and Accounting Technical Director at BDO USA, LLP.

TAMMY RICCIARDELLA, CPA, McLean, VA, is a Director at BDO Institute for Nonprofit Excellence^SM.

Blurb

EXPERT GUIDANCE ON HOW TO READ, INTERPRET, AND USE NONPROFIT FINANCIAL STATEMENTS UPDATED FOR THE NEW FASB STANDARD RELATED TO NONPROFIT FINANCIAL REPORTING (ASU 2016–14)

If you′re an executive or volunteer leader at a nonprofit who is unfamiliar with the formats and language of financial statements, this book fills you in on how to read and correctly interpret those critical documents. If you′re a seasoned pro who wants to brush up on your skills while familiarizing yourself with the latest FASB nonprofit reporting standards, this is the only guide you need.

The intent behind creating the ASU 2016–14 was to improve the clarity and usefulness of nonprofit financial statements, but making sense of those statements can still be tough going for the uninitiated. Accountants and non–accountants alike who use and prepare nonprofit financial statements need guidance on how to interpret and implement the new FASB standard. Written for both audiences, this book:

• Clearly defines accounting terminology and concepts, while offering numerous examples of financial statements reflecting both the old and new FASB standards
• Steers you, line–by–line, through financial reports, providing explanations of differences between the old and new standards
• Provides numerous illustrations that help you quickly feel at home with the format of nonprofit financial statements
• Offers exercises that help you gain insight into the concepts surrounding nonprofit financial statements and reinforce your command of those concepts

How to Read Nonprofit Financial Statements, Third Edition is an invaluable resource for everyone who reads, interprets, or prepares those all–important documents.