Wiley Not–for–Profit GAAP 2017: Interpretation and Application of Generally Accepted Accounting Principles

The most practical, authoritative guide to Not–for–Profit GAAP

Wiley Not–for–Profit GAAP 2017 is a comprehensive, easy–to–use guide to the accounting and financial reporting principles used by not–for–profit organizations. It is written with the needs of the financial statement preparer, user, and attestor in mind, and provides a complete review of the authoritative accounting literature that impacts all types of not–for–profit organizations.

At the same time, Wiley Not–for–Profit GAAP 2017 features many examples and illustrations that will assist the reader in applying the principles to real–life situations. Key features include:

Easy–to–use information that enables the reader to find what they need quickly Coverage of accounting principles specifically related to not–for–profit organizations, as well as accounting principles applicable to organizations of all kinds Coverage of accounting issues affecting different types of not–for–profit organizations A comprehensive disclosure checklist that helps financial statement preparers and attestors ensure that all disclosures required by GAAP have been considered Many examples and illustrations that make it easy to put accounting theory into practice

This 2017 edition includes new information covering:

New FASB not–for–profit reporting model changes Revenue recognition update New lease accounting standard Consolidation standards for limited partnerships

Wiley Not–for–Profit GAAP 2017 is a thorough and reliable reference which is designed to be kept to hand on your desk, rather than on the shelf.

Preface vii

About the Authors ix

Not–for–Profi t Accounting Literature xi

Part 1 Overview of Not–for–Profi t Organizations 1

Chapter 1 Overview of Not–for–Profi t 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 57

Part 3 Specifi c Not–for–Profi t Accounting Topics 75

Chapter 7 Fund Accounting 77

Chapter 8 Net Assets 89

Chapter 9 Contributions, Pledges, Noncash Contributions, and Exchange Transactions 99

Chapter 10 Investments 145

Chapter 11 Affi liated Organizations 165

Chapter 12 Split–Interest Agreements 187

Chapter 13 Fundraising and Joint Costs 197

Chapter 14 Functional Reporting 211

Chapter 15 Collections 217

Part 4 Other Accounting–Related Not–for–Profi t Topics 221

Chapter 16 Accounting for Specifi c Types of Not–for–Profi ts 223

Chapter 17 Importance of Budgets to a Not–for–Profi t 237

Chapter 18 Principal Federal and State Tax Reporting and Regulatory Requirements 255

Part 5 General Accounting Topics Applied to Not–for–Profi t Organizations 317

Chapter 19 Current Assets and Current Liabilities 319

Chapter 20 Inventory 327

Chapter 21 Long–Lived Assets, Depreciation, and Impairment 335

Chapter 22 Intangible Assets 347

Chapter 23 Contingencies 355

Chapter 24 Mergers and Acquisitions 371

Chapter 25 Accounting for Pensions and Postretirement Benefi ts 387

Chapter 26 Long–Term Liabilities 423

Chapter 27 Accounting Changes 441

Chapter 28 Accounting for Leases 447

Chapter 29 Financial Instruments 483

Chapter 30 Capitalization of Interest Costs 495

Appendix: Disclosure Checklist 501

Index 531

Richard F. Larkin, CPA (Bethesda, MD) is technical director of not–for–profit accounting and auditing for Long Group, Chartered, in Bethesda, Maryland. He is a certified public accountant with over 35 years of experience serving not–for–profit organizations. He teaches, speaks, and writes extensively on not–for–profit industry matters.

Marie DiTommaso, CPA, (Woodcliff Lake, NJ) is a partner in her own CPA practice, DiTommaso & Ruppel, CPAs. She has over 20 years of experience in accounting and financial reporting in both the not–for–profit and commercial accounting environments