Nonprofit Accounting (Currently Unavailable)

Author: Steven Bragg

CPE Credit:  16 hours for CPAs

This course provides guidance in how to create and operate a nonprofit accounting system, close the books, and produce financial statements – all while operating in accordance with the unique nonprofit accounting standards.

Coverage of accounting standards includes revenue recognition, joint costs, split-interest agreements, and mergers and acquisitions. The course also describes detailed systems of control, budgeting, and ratio analysis to maintain a proper level of control over funds.

Publication Date: May 2014

Designed For
Any practitioners that deal with nonprofit entities and/or clients

Learning Objectives

  • Cite the criteria used to define a nonprofit organization.
  • Note the essential building blocks of an accounting system.
  • Identify the types of nonprofit financial statements and the comparable for-profit financial statements.
  • Note the instances in which revenue and gains can be recognized by a nonprofit.
  • Cite the methods used to assign costs to a grant-funded program.
  • State the applicable rules related to the recognition of investment assets.
  • Identify the costing characteristics of the various cost layering methodologies.
  • Identify the options available for recognizing a collection.
  • Note the applicable rules related to the handling of leasehold improvements and sale-leaseback transactions.
  • Recognize the components of net periodic pension cost, and the accounting for a defined contribution plan.
  • Identify the types of joint costs, and the tests used to determine whether fundraising costs can be allocated.
  • Define the situations in which accounting principles can be changed, and when retrospective application is allowed.
  • State the concept of the principal market and the basis upon which fair value is determined.
  • Cite the accounting for a contribution receivable, as well as the steps involved in a petty cash reconciliation.
  • Identify the accounting associated with split-interest agreements, as well as the nature of lead and remainder interests.
  • Note the circumstances under which the reporting consolidation of two or more entities is required or allowed.
  • Recognize the situations in which the carryover and acquisition methods are used, and whether goodwill or an inherent contribution can be recorded for an acquisition transaction.
  • State the IRS forms used for various nonprofit tax reporting activities, and the circumstances under which they must be filed.
  • Cite the steps involved in closing the books at the end of a reporting period.
  • Identify the line items used in nonprofit budgets and cash forecasts.
  • Note the considerations to be reviewed when creating controls, as well as the controls employed in the cash, fixed asset, payables, and other accounting areas.
  • Recognize the considerations involved in setting policies for collections, asset dispositions, and employee labor.
  • Cite the types of analysis that can be employed to yield insights into the financial condition and fundraising effectiveness of a nonprofit.

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (16 hours)

Program Prerequisites
None

Advance Preparation
None

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