Actuaries of the World (AW), a not-for-profit organization whose objective is to provide actuarial services to developing countries, was organized early in 2013 by a group of Canadian actuaries. They initially thought that they would use the restricted fund method to account for restricted contributions and so they drafted the 2013 financial statements on that basis. The board is, however, now considering a single-column presentation using the deferred contribution method of accounting for restricted contributions. You, as a member of AW's board, have volunteered to help with the board's decision by redrafting the statements. AW's statements using the restricted fund method are as follows:

Required
(a) Prepare a revised statement of operations and a statement of financial position using the deferred contribution method.
(b) Contrast the approaches of the deferred contribution method and the restricted fund method to communicate information to stakeholders about restricted contributions and their utilization.

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ACTUARIES OF THE WORLD Statement of Operations and Changes in Fund Balances Year Ended December 31, 2013 Endowment Fund Special Project Fund Capital Asset Fun General Fund Revenues Government grants (unrestricted) Restricted contribution for endowment Interest on endowment Restricted contribution for special project Restricted contribution for office equipment $140,000 250,000 10,000 65,000 65,000 50,000 15,000 15,000 150,000 250,000 Expenses Special project expenses Amortization of office equipment Other expenses Excess of revenues over expenses Fund balances beginning of year Fund balances end of year 88,000 62,000 0- $ 62,000 3,000 12,000 $12,000 250,000 15,000 $250,000 15.000 ACTUARIES OF THE WORLD Statement of Financial Position December 31, 2013 Endowment Special Capital General Fund und Project Fund Asset Fund Cash Investments Office equipment-net Total assets Liabilities $62,000 $15,000 250,000 12,000 $12,000 $62,000 $250,000 $15,000 Fund balances Endowment fund Special project fund Capital asset fund Unrestricted 250,000 15,000 12,000 62,000 62,000 Total liabilities and fund balances $250,000 $15,000 $12000