Expenses: Not-for-Profit Accounting & Financial Reporting
Not-for-profits (NFPs) exist to fulfill a public benefit or mission. Donors, creditors, and those charged with management and governance of the NFP will often rely on expenses reported in the NFP’s financial statements to assess the efficiency of resources expended to achieve the organization’s mission.
In this CPE course, you will learn the basics of accounting for expenses, including recognition, measurement, and financial statement display issues that are unique to NFPs. Topics covered include functional expense allocation methods and accounting for joint activities. You will have an opportunity to work through several real world examples.
- When you complete this course, you will be able to:
- Differentiate between gains, revenues, expenses and losses
- Identify the requirements of an NFP’s reporting of expenses by functional classification
- Recall the fundraising activities of an NFP and the kinds of expenses related to them
- Recognize the proper accounting treatment for expenses from joint activities
- Functional reporting of expenses
- Distinguishing between program services and supporting services
- Expense allocation methods
- Accounting for joint activities
- Financial statement presentation and disclosure