Offers examples and case studies that will help you allocate costs and accurately prepare the statement of functional expenses.
NASBA Field of Study
This video-based CPE course is included in the Not-for-Profit Certificate II Program. It can be purchased individually or as a part of the Not-for-Profit Certificate II - Financial Reporting track.
Like many other businesses, not-for-profits (NFPs) incur costs such as salaries, rent, and utilities. Unique to NFPs is the requirement that those expenses be classified in the financial statements according to the purpose, or function, for which they were used.
The statement of functional expenses assists readers of the NFP's financial statements in associating expenses with the service efforts and accomplishments of the organization. Users of this information include donors, volunteers, rating agencies, creditors, and constituents of the NFP. A well-designed expense allocation system and corresponding statement of functional expenses is of utmost importance for successful reporting in the NFP environment.
This CPE course offers you detail-rich examples and case studies that will help you allocate costs and accurately prepare the statement of functional expenses. Included in the course resources are various financial statement examples and common ratios used in analyzing NFP financial statements.
Note: As of August 1, 2018, course content has been updated to reflect implementation of FASB Accounting Standards Updates (ASUs) effective for most not-for-profit entities for their next financial reporting period, including those related to financial statement presentation (ASU 2016-14) and revenue recognition (ASU 2014-09 and ASU 2018-08).
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