Statement of Cash Flows: Not-for-Profit Financial Reporting
A statement of cash flows is necessary to comply with GAAP, which is required of for-profit and not-for-profit (NFP) businesses alike. However, NFPs are required to comply with unique industry-specific guidance that applies only to them. For example, when an NFP receives cash with a donor-imposed restriction or holds cash for the purpose of a long-term endowment, debt-service reserve, quasi endowment, or future acquisition of property, those activities will require special reporting consideration.
This CPE course offers you detail-rich examples and case studies. Learn the nuances of NFP financial reporting and get the information you need to successfully prepare a statement of cash flows.
You will have an opportunity to download a sample NFP statement of cash flows, which is included in your course materials.
- When you complete this course, you will be able to:
- Determine how to prepare, in accordance with GAAP, a statement of cash flows (SCF)
- Differentiate between operating, financing, and investing activities
- Determine the effect of a particular transaction or significant event on the reporting entity’s SCF
- Differentiate between direct method and indirect method cash flow statement and identify steps for successful completion of the statements under both methods
- GAAP industry-specific guidance
- Industry best practices
- Direct and indirect method
- Classification (operating, investment, and financing activities)
- Reconciliation of change in net assets to cash balances
- Effect of donor restrictions on cash flow reporting