Statement of Activities: Not-for-Profit Financial Reporting
How does your not-for-profit (NFP) evaluate financial performance? Of all the financial statements, the statement of activities is among the most useful to an NFP’s managers and constituents. The statement of activities reports revenues, gains, expenses, and losses for the period. It is a useful tool in assessing an NFP’s service efforts and its ability to continue to provide services to sustainably carry out its mission.
There are numerous ways in which an NFP’s statement of activities differs from the income statement of a for-profit business. For example, to properly present revenues and gains, one will need to understand how donor-imposed stipulations affect classification.
This CPE course offers you detail-rich interpretations and case studies that will help you learn to prepare an NFP’s statement of activities.
Included as a course resource is a sample statement of activities.
- When you complete this course, you will be able to:
- Determine how to prepare, in accordance with GAAP, a statement of activities
- Identify the most appropriate financial statement format, considering the complexity of the entity
- Determine the effect of a particular transaction or significant event on the entity’s statement activities
- Identify the effect of donor-imposed restrictions on the reporting of revenues in the statement of activities
- Comparative information
- Contributions and Donor-imposed restrictions
- Distinguishing revenues from gains
- Expense reporting by function * Net asset classification * Presentation options * Industry best practices
- Net asset classification
- Presentation options
- Industry best practices