Assets are the things owned by an organization to generate value in the future by performing economic activities. A few examples of assets are property, machinery, or cash. Net assets are the leftover assets in an organization once all its liabilities (or obligations or debt) have been paid off. Net Assets for a Not-For-Profit Organization: …
What is Permanently Restricted Net Assets? (Explained) Read More »
Overview: The financial accounting and reporting of clubs and societies differ majorly from for-profit organizations’ financial accounting and reporting. The main objective of for-profit organizations, as the name suggests is, to make a profit. In contrast, clubs and societies are non-profit organizations whose main goal is to provide their own members with services and facilities. …
What is an Income and Expenditure Account? (Explained) Read More »
Just like all for-profit organizations, governmental entities have to prepare annual financial statements to report all the revenue generated, expenses incurred, and their net worth. The Governmental Accounting Standards Board (GASB) requires all government organizations to prepare the Comprehensive Annual Financial Reports (CAFR) as per modified accrual basis accounting. Just like the financial statements for …
What Is The Statement Of Fund Balance? (Explained) Read More »
Introduction: The statement of revenues, expenditures, and changes in fund balances is the income statement prepared by governmental organizations, which tracks in the inflow and outflow of funds or resources. It mostly contains the same significant funds as a balance sheet. Revenues in the statement of revenues, expenditures, and changes in fund balance are shown …
Statement of Revenues, Expenditures, and Changes in Fund Balances Read More »
Introduction: The fund balance is the difference of available funds after accounting for a government’s assets minus its liabilities and delayed outflows. The restricted fund balance is the section of the total fund balance that can either not be spent or is restricted for a particular use. The unrestricted fund balance is the portion of that total …
What is unrestricted fund balance? (Explanation and How Does Its Work?) Read More »
Introduction: The statement of sources and uses of funds is a statement that condenses the financial statements and financial plan in one statement. It displays the sources from which an organization or a company manages to generate cash and all the areas where the obtained cash is used during an accounting period. This statement also …
What is the statement of sources and uses of funds? Read More »
Retained Earnings Retained Earnings also called accumulated earnings, retained capital or earned surplus appears in the shareholder equity section of the statement of financial position more commonly known as Balance Sheet. It is the sum of profits and losses at the end of the accounting period after deducting the amount of dividends. Retained earnings (ending …
Retained Earnings for a Non-profit Organization: Detail Explanation Read More »
