Wiley Not-for-Profit GAAP 2016: Interpretation and Application of Generally Accepted Accounting Principles

Richard F. Larkin, Marie DiTommaso



Detailed, practical coverage of GAAP, tailored to not-for-profit organizations

Wiley Not-for-Profit GAAP 2016 is a thorough examination of the authoritative standards for measurement, presentation and disclosure as applied to not-for-profit organizations. Due to these organizations' unique characteristics, not-for-profit accountants must adhere to specific Generally Accepted Accounting Principles (GAAP). These requirements are complex and ever evolving, but this single volume brings them together, providing the most up-to-date information available. Flowcharts and diagrams are used to assist the reader's understanding of the material. Additionally, a financial statement disclosure checklist facilitates GAAP adherence.

Designed specifically for accountants in public practice and industry, this guide covers requirements from all relevant organizations, including the Financial Accounting Standards Board (FASB) and Accounting Principles Board (APB). Technical and accounting research bulletins are clearly and concisely summarized, as are all statements of position important to not-for-profit organizations. Together, these resources make Wiley Not-for-Profit GAAP 2016 a complete reference tool for auditors and financial personnel in the not-for-profit sector.

• Refine basic financial statements, including Financial Position, Activities and Cash Flow
• Tackle not-for-profit-specific issues like fundraising, noncash contributions, affiliations and pledges
• Tailor accounting methods to the specific type of organization, with budgeting, tax reporting and regulatory advice
• Discover how general accounting topics like assets, mergers and liabilities are applied to not-for-profit organizations

Preparers and auditors of not-for-profit accounts must stay up-to-date on the latest GAAP practices to best serve the organization, while complying with all disclosure, reporting and regulatory requirements. Wiley Not-for-Profit GAAP 2016 provides extensive coverage and practical advice on the latest GAAP, tailored to the not-for-profit organization's unique needs.

Table of Contents

Preface vii
About The Authors ix

Not-for-Profit Accounting Literature xi

Part 1 Overview of Not-for-Profit Organizations 1

Chapter 1 Overview of Not-for-Profit Organizations 3

Chapter 2 Cash Versus Accrual Basis Accounting 11

Part 2 Basic Financial Statements 21

Chapter 3 Statement of Financial Position 23

Chapter 4 Statement of Activities 31

Chapter 5 Statement of Cash Flows 41

Chapter 6 Other Financial Statement Issues 55

Part 3 Specific Not-for-Profit Accounting Topics 73

Chapter 7 Fund Accounting 75

Chapter 8 Net Assets 87

Chapter 9 Contributions, Pledges, Noncash Contributions, and Exchange Transactions 95

Chapter 10 Investments 139

Chapter 11 Affiliated Organizations 159

Chapter 12 Split-Interest Agreements 179

Chapter 13 Fundraising and Joint Costs 189

Chapter 14 Functional Reporting 203

Chapter 15 Collections 209

Part 4 Other Accounting-Related Not-for-Profit Topics 213

Chapter 16 Accounting for Specific Types of Not-for-Profits 215

Chapter 17 Importance of Budgets to a Not-for-Profit 229

Chapter 18 Principal Federal and State Tax Reporting and Regulatory Requirements 247

Part 5 General Accounting Topics Applied to Not-for-Profit Organizations 305

Chapter 19 Current Assets and Current Liabilities 307

Chapter 20 Inventory 315

Chapter 21 Long-Lived Assets, Depreciation, and Impairment 323

Chapter 22 Intangible Assets 335

Chapter 23 Contingencies 343

Chapter 24 Mergers and Acquisitions 359

Chapter 25 Accounting for Pensions and Postretirement Benefits 375

Chapter 26 Long-Term Liabilities 411

Chapter 27 Accounting Changes 429

Chapter 28 Accounting for Leases 435

Chapter 29 Financial Instruments 469

Chapter 30 Capitalization of Interest Costs 481

Appendix: Disclosure Checklist 487

Index 517