The FASB requires for-profit entities to classify their investments as trading, available-for-sale, or held-to-maturity. However, it does not require not-for-profit entities to do the same. What might be the reasoning for this difference in requirements? Which approach is more beneficial to the readers of the financial statements of a not-for-profit organization? Why?
Answer to relevant QuestionsDifferentiate between public support and revenues as sources of assets for private not-for-profit organizations. What benefit is there in accounting for these differently? Distinguish between accounting and financial reporting for state and local governments and VHWOs for the following issues: 1. Measurement focus and basis of accounting 2. Revenue recognition 3. Depreciation expense 4. ...From the expense accounts information and allocation schedule shown in Problem 18-8, prepare a statement of functional expenses for We Care for the year ended December 31, 2019. Expense accounts from the pre-allocation trial ...We Care, a VHWO, conducts two programs: Adult Services and Education. It has the typical supporting services of management and fund raising. The condensed trial balances after allocable expenses have been assigned are ...Alpha Hospital, a nongovernmental not-for-profit organization, has adopted an accounting policy that does not imply a time restriction on gifts of long-lived assets. For items (1) through (6), indicate the manner in which ...
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