What is a refundable advance
Its when cash is received in a conditional contribution, it is a liability because if the condition is not met it has to be paid back. They are not net assets
Are conditional contributions revenue?
conditional contributions are not recognized as revenue or net assets until the conditions are met.
How are unconditional promises to be paid over time classified on the net asset section
Unconditional promises to pay over a period of time are generally classified as with donor restrictions as to time until collection.
Unconditional does not mean unrestricted
Can a board impose the classification of a contribution
No only donors can, if board directors are determining where funds go, that means they were already with out restrictions
When SOME specialized skill is recorded as revenue and expense what is the net classification
With out donor restrictions because there is no restrictions imposed by the donor
What is the JE for when a conditional promise is received
There is no JE, conditional pledge receivable or conditional receivable are never used
What is included on investment income on debt securities
Interest earned & un realized gains or losses
What are financially interrelated organizations
Ability to influence operating and financial decisions of the other
Ongoing economic interest in the net assets of the other
Recipient accounting & beneficiary
Yes financial interrelationship & variance power
Recipient accounting: contribution
Beneficiary: interest in net asset
Recipient accounting & beneficiary
Yes financial interrelationship & no variance power
Recipient accounting: contribution
Beneficiary: interest in net asset
Recipient accounting & beneficiary
No financial interrelationship & yes variance power
Recipient accounting: contribution
Beneficiary: receivable and contribution
Recipient accounting & beneficiary
No financial interrelationship & no variance power
Recipient accounting: liability
Beneficiary: receivable and contribution or beneficial interest
CAP for recognizing collections
Collection held for public viewing, education, or research
Artifacts cared for, preserved, and protected
Proceeds reinvested in other collection items or direct care
If these are met you cannot recognize or capitalize them. If the collection is not capitalized:
The items are not recorded as assets on the balance sheet.
They are disclosed in the notes to the financial statements.
