Question: Some VHWOs and ONPOs are required to follow the FASB s
Some VHWOs and ONPOs are required to follow the FASB’s not-for-profit accounting guidance. Others are not permitted to do so. Why do different standards apply? Which organizations must apply the FASB guidance? What guidance must the other organizations apply?
Answer to relevant QuestionsIdentify and distinguish between the three classes of net assets required by SFAS No. 117.What classificational detail must a not-for-profit organization present for expenses? What are the major classifications of expenses? Distinguish between them.What are “net assets released from restrictions”? How are they reported?Recast the Statement of Activities of the Illustrative VHWO/ONPO presented in Illustration, in a columnar format. Use one column for changes in each class of net assets and a totalcolumn.The following information was drawn from the accounts and records of the Kindness Cooperative, a nongovernment ONPO. The balances are as of December 31, 20X7, unless otherwise noted.Unrestricted Support—Contributions . . ...
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