...ACC460( Government and Non-Profit Accounting )Complete Class Click This Link to Get The Tutorial: http://www.myhomeworkspot.com/ACC455-Corporate-Taxation-Complete-Class-002.htm Week 1 Individual Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) Analysis Paper Prepare a 350- to 700-word paper comparing and contrasting GASB and FASB accounting. Explain the objectives of the two standards boards and how they are similar and different. Describe how the modified accrual basis of accounting differs from full accrual accounting. Format your paper consistent with APA guidelines. Discussion Questions DQ 1 Log into http://www.charitynavigator.org/. Choose a good charity and a bad charity and explain why you feel they should labeled good or bad. DQ 2 What is fund accounting? How does it compare to proprietary accounting? Why is fund accounting necessary? What are the major fund types? DQ 3 What are some examples of government and not-for-profit organizations? How do businesses measure success? How do government organizations measure success? DQ 4 What is the purpose of CAFR? What are the components of CAFR? Why is the Federal Government not subject to GASB 34? How do government-wide financial statements add information not available in fund financial statements? Week 2 Individual Ch. 1, 2, & 3 Textbook Exercises Resources: Ch. 1, 2, & 3 of Government and Not-for-Profit Accounting Prepare written answers...
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...Accounting for Capital Projects and Debt Service ------------------------------------------------- Questions for Review and Discussion 1. Budgets, and hence budget comparisons, are not as essential for capital projects and debt service funds because they are often on a project, rather than an annual, basis and spending is typically authorized on that basis. 2. When bonds are issued for more than their par value, the premium can be interpreted as an adjustment of the interest rate and transferred to the debt service fund — the fund in which resources for the payment of debt will be accumulated. Although the same interpretation can be placed upon bond discounts, there may be no funds available in the debt service fund (or any other fund) for transfer to the capital projects fund. Therefore, the project must be scaled back or additional means of financing secured. 3. Interest (on investments) is generally recognized as revenue is earned, i.e., on a full accrual basis. Interest expenditure, by contrast, should not be accrued; it should be reported as an expenditure only as due. The rationale for recognizing the expenditure only as the interest is due is that most jurisdictions will not appropriate the resources to pay the interest, or transfer them to the debt service fund, until then. “To accrue the debt service fund expenditure and liability in one period but record the transfer of financial resources for debt service purposes in a later period would be...
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...operating a modern fleet of over 150 wide-bodied aircraft. Emirates airlines accounts to about 40% of the total movements of flights and aiming for at least 70% total flights coming in and going out of Dubai International Airport.” (http://www.emirates247.com/look-back-2010-onto-2011/the-most-popular-stories-of-2010) I am an accountant for Emirates Airlines and in charge of creating a project aiming to increase the company’s market share and gain more profit without sacrificing the company’s quality of services and reputation. I just recently began my employment in the company and now facing the big challenge of creating this project and attaining the goal of making it huge in international market and increasing our sales without compromising our excellent customer service. To be able to achieve this goal, I definitely need to focus in training and development of the company’s employees, both current and newly hired ones. I am optimistic about this project and I will do my best to make it work. However, I feel that accounting department alone cannot achieve this goal thus I...
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...was 1900 since the emergence of non-profit organizations have started through the initiation of Arts and Culture Organization as it diversified its status from a profit-based system into a kind of philanthropic organization with tax incentives as the main instigation for the move. Through the years, the industry of non-profit organizations has been vastly engaged in different sectors of the society primarily to serve the general public. According to Peter F. Drucker, the “non-profit” institution neither supplies goods nor services not controls. Its “product” is neither a pair of shoes nor an effective regulation. Its product is a changed human being. The non-profit institutions are human-change...
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...Differences of Accounting for Government & Nonprofit organization versus for profit business. Business accounting has always been considered by some people to be the model for government accounting. But there are differences between one and another. Government and not for profit are governed mainly by their budgets. The budget covers the governmental decisions on how to raise money and where to spend it. Traditionally the budget takes center stage and one of the most public decisions in the government. They may have several budgets for the different funds in government and may be backed by the force of law. Nonprofit accounting is guided by FASB Statement of Financial Accounting Standards Nos. 116 and 117. Nonprofits usually don't have a revenue stream similar to that of a for-profit business, which gets funds through the selling of goods or services. Instead, a nonprofit receives donations and government and foundation grants. Unlike a for-profit, a nonprofit often needs to report on funds received. For example, if an organization gets federal funding, it must report on how the money was spent and it must comply with various rules. This can get very complex, which is why you may see specialized accountants in large nonprofits who are experts in certain funding sources. One of the main differences between the GASB and the FASB is that the GASB is intended to keep and improve upon the current standards put in place for governmental accounting purposes; while...
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...Financial Management in Non-profit Organizations and How It Compares to For-Profits Organizations are usually classified as either non-profit or for-profit. Business corporations are organized for-profit. While non-profits usually include associations, charities, and other voluntary organizations formed to further cultural, educational, religious, or public service objectives. Non-profits and for-profits do have some things in common. Both types of organizations attract individuals focused on maximizing income, minimizing expenses, and reaching their goals. While there are many similarities, non-profits and for-profits have many differences. The most fundamental difference between nonprofit and for-profit organizations is the reason they exist. A non-profit organization exists to provide a particular service to a community, while a for-profit organization exists primarily to generate a profit for the company’s owners and shareholders. A non-profit organization channels all of their income into services and programs aimed at their mission compared to for-profit organizations that distribute profits between owners, employees, shareholders and the business itself (Bottiglieri, Conway, & Kroleski, 2011). Financial management for non-profit organizations is similar to for-profit organizations in many ways however key differences shift the focus of a nonprofit manager. These differences include organizational structure, ownership, distribution of profits, generating revenue and...
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...for-profit organizations, non-profit organizations, government, and the economy. With many standards, rules, procedures, and regulations placed on auditing financial reports for organizations, one would obtain an understanding as to the Generally Accepted Auditing Standards (GAAS). These GAAS were collaborated by members of the American Institue of Certified Public Accounting (AICPA) in the 1940's. In the 1940's, three guidelines to include General Standards, Standards of field work, and Standards of reporting. Each of these topics includes details as to the "flow" of the auditing process. After the Sarbanes-Oxley Act of 2002, (SOX), the regulations were increased with detail, and offered more insight as to the consequences of not following the "rules". The Public Company Accounting Oversight Board, (PCAOB), obtained more duties to assist in reviewing material relevant to auditing and auditors. One of the points one may find interesting is the importance of the regulations lack of required documentation. Rather than placing detailed requirements on included reports it lays a framework of guidelines of which to include, and what material needs to be disclosed. The main purpose for the regulations is to promote full disclosure and transparency, a common element which was missing prior. Commonly, many find the regulations to apply to for-profit and publicly traded organizations, however; many are inclusive for other organizations too. Island Ceremonies, is a non-profit outreach...
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...said that accrual accounting is superior to cash basis accounting. Accrual accounting reflects the true financial obligations of an organization when compared to cash basis accounting. Thus, portraying a more accurate description of the organization’s financial position and financial status. Question 2) This statement was included in the FASB pronouncement Statement of Financial Accounting Standard No. 106 which covers 'Employers' Accounting for Postretirement Benefits Other Than Pensions' which was released in the year 1990. Question 3) The cash basis method is used often by small businesses, including non-profits. Allowing the use of cash basis accounting for smaller businesses is more effective and preferable to accrual accounting. Any business with smaller and simpler transaction processes does not need a complex accounting system like accrual accounting. Question 4) Cash basis accounting is much easier to audit than accrual basis accounting because the audit trail is easier to verify and review for accuracy. Also, there are no adjusting entries to create and review. Question 5) Yes, the FARS suggests the existence of guidance that sponsors the idea that certain earnings may be accounted for on an accrual basis while the related income taxes are accounted for on a cash basis. For example, rental income received in advance may be accounted for under cash basis for tax purposes while the related income is accounted for under accrual basis for accounting income purposes...
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...OF ORGANIZATIONS SUCH AS MANUFACTURERS, RETAILERS, SERVICE FIRMS, NON PROFIT ORGANIZATIONS AND GOVERNMENT ENTERPRISES PROVIDING US WITH A VAST ARRAY OF GOOD AND SERVICES. ALL THESE HAVE ORGANIZATIONS HAVE TWO THINGS IN COMMON, FIRST EVERY ORGANIZATION HAS A SET OF GOALS OR OBJECTIVES FOR EXAMPLE AIRLINE HAS OBJECTIVE THAT INCLUDES PROFITABILITY AND CUSTOMER SERVICE , A POLICE DEPARTMENT GOAL MAY INCLUDE INCLUDING PUBLIC SAFETY WITH COST EFFECTIVENESS, SECOND IN PURSUING AN ORGANIZATION GOALS MANAGERS MAY MAKE MANY DECISIONS AND FOR THAT THEY NEED INFORMATION. THE INFORMATION NEEDS OF MANAGEMENT EXTEND ACROSS FINANCIAL, PRODUCTION, MARKETING LEGAL AND ENVIRONMENTAL ISSUES. DEFINITION: “MANAGEMENT ACCOUNTING IS THE PROCESS OF PRODUCING FINANCIAL AND NON FINANCIAL INFORMATION TO ASSIST MANAGERS AT ALL LEVELS OF AN ORGANIZATION. MANAGEMENT ACCOUNTING INFORMATION SHOULD BE DESIGNED TO MEET MANAGER’S SPECIFIC NEEDS AS THEY CARRY OUT THEIR PLANNING AND CONTROL FUNCTIONS AND MAKE SHORT AND LONG TERM DECISIONS.” OR “THE PRIMARY GOAL OF MANAGERIAL ACCOUNTING IS TO PROVIDE INFORMATION THAT HELPS MANGERS PLAN AND EVALUATE COMPANY ACTIVITIES AND MAKE BUSINESS DECISION. PROVIDING INFORMATION FOR PLANNING, EVALUATION AND DECISION MAKING IS THE PRIMARY OBJECTIVE OF MANAGERIAL ACCOUNTING. MANAGEMENT ACCOUNTING vs. FINANCIAL ACCOUNTING USERS OF INFORMATION ➢ FINANCIAL ACCOUNTING IS AIMED PRIMARILY AT EXTERNAL USERS LIKE BANKS ,SHARE HOLDERS, CREDITORS...
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...Non-For-Profit Fraud Authors’ Note This paper was prepared for Advanced Accounting, Summer 2013. OUTLINE 1. Introduction 2. The Reasons of Fraud in Nonprofits. 3. Types of Nonprofit Fraud. 4. Recent Fraud Cases: A. $1,000,000 Charity Scam by John Cody. B. ASPCA International and $27,000,000 Fraud. C. Fraud Committed by Anita Collins, Church Bookkeeper. D. Fraud Committed by Hugh Blackburn. 5. Fraud Prevention in Nonprofit Organizations. 6. Conclusion. Introduction. Most of us are familiar with the organization ASPCA (American Society for Prevention of Cruelty to Animals) and some of us even donate or consider donating money or time. But not many of us know that only 5 cents of every dollar collected by ASPCA goes actually towards the organization’s primary goal, which is helping animals. Just a few months ago a disaster hit NYC and the areas around. It is hard to believe but it gave great opportunity for fraud. Consider the case of the couple John Sandberg and Christina Terrassino, who launched a charity website, The Hurricane Sandy Relief Foundation. According to DCA (Division of Consumer Affairs), they have solicited more than $600,000 from about 2,000 donors. However, less than 1 percent of the money was given to the victims of the hurricane (Rose, 2013). Beside, consider the case of Anita Collins, a 67-year old church bookkeeper. She is known for stealing approximately $1,000,000 from the church she worked in (Huffington...
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...can accelerate accounting of expected expenses, delay accounting of expected revenue, engage in off balance sheet transactions to make the company's profitability appear temporarily poorer, or simply promote and report severely conservative (e.g. pessimistic) estimates of future earnings. Such seemingly adverse earnings news will be likely to (at least temporarily) reduce share price. (This is again due to information asymmetries since it is more common for top executives to do everything they can to window dress their company's earnings forecasts). There are typically very few legal risks to being 'too conservative' in one's accounting and earnings estimates. A reduced share price makes a company an easier takeover target. When the company gets bought out (or taken private) – at a dramatically lower price – the takeover artist gains a windfall from the former top executive's actions to surreptitiously reduce share price. This can represent tens of billions of dollars (questionably) transferred from previous shareholders to the takeover artist. The former top executive is then rewarded with a golden handshake for presiding over the firesale that can sometimes be in the hundreds of millions of dollars for one or two years of work. (This is nevertheless an excellent bargain for the takeover artist, who will tend to benefit from developing a reputation of being very generous to parting top executives.) Similar issues occur when a publicly held asset or non-profit organization undergoes privatization...
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...Week 1 DQ 1 Why is it important that financial accounting systems report performance fairly and factually? Financial accounting systems are responsible for recording, monitoring and maintaining all financial and accounting transactions within an organization. It is crucial that financial accounting systems report performance fairly and factually because the information within the system is required for the organization to make good economic decisions that could make or break the entire business. The reports that are created by financial accounting systems are used to provide information to outside parties such as tax experts, creditors, and/or potential investors. Inaccurate financial reports can lead an organization to experience legal issues, financial fraud, and can cause a bad reputation for the overall organization. In order to maintain and grow a profitable business, organizations must rely on fair and factual financial reports. Financial accounting systems must also report performance fairly and factually to ensure that the organization is performing and operating properly. An inaccurate financial report, for example, can cause an organization to make an economic decision that the organization may not be able to afford to do. In a health care organization, financial reports must also be accurate to avoid errors in medical billing that can lead the organization to lawsuits and major financial losses. Financial reports that are not created fairly and factually...
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...service. These organizations have helped millions of people around the world by providing a great deal of valuable assistance and support via educational, scientific, charitable, legal, and many other means. An NPO is “a group organized for purposes other than generating profit and in which no part of the organization's income is distributed to its members, directors, or officers” (law.cornell.edu). Types of NPOs include volunteer service organizations, public charities and schools, public clinics and hospitals, political organizations, legal aid societies, labor unions, churches, research institutes, professional and environmental associations, museums, and some government agencies (law.cornell.edu). Some of the purposes service for these organizations include working for social change, to help people help themselves, and to fight for the civil rights of others. NPOs are a vital part of our nation’s economy, as they not only provide much needed public services to all concerned citizens and inhabitants of the U.S., they also provide millions of jobs for nation’s workforce. This essay will discuss the application of financial management techniques in NPOs. A comparison and contrast of nonprofit and for profit organizations (FPOs) will be examined while focusing on the fundamental differences between the two. How NPOs and FPOs are affected by different laws that dictate their daily operations will be explored. Information regarding how sources of funds are generated, how the use...
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...000 | | Transfers to parent corporation | 10,000 | | Total Operating Expenses | | $540,000 | NET INCOME LOSS/GAIN | | $420,000 | Explain the difference between the accrual basis of accounting and the cash basis of accounting All financial transactions events are based on cash basis. This applies to all incoming receipts or outgoing payments or outflows of an enterprise. Cash based accounting measures the difference in cash recipes and cash disbursements during a reporting period. Accrual accounting measures a companies accomplishments and resources used during the period, regardless of when cash is received or paid. Accrual basis accounting is the method of accounting that most businesses and professionals are required to use by law. What are some ways in which accounting for healthcare organizations (HCOs), especially not-for-profit (NFP) ones, tends to differ from accounting in other industries? Most of the funding or assets are coming from the community, outside government entities, and third party contributors. Dealing with the government requires checking with compliance and reporting in regularly to ensure that you are following rules and regulations. There are no residual ownership claims with Non-profit organizations. After all liabilities have been resolved they become ownership of the state....
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...requirements. The health care financial environment is the most common for-profit, non-profit and also the government. This paper will give a description of the financial structure is of each environment while looking at the policies are unique to each of the environments. This will be done while also looking at the dominant financial management practices are prevalent within the financial environments and why it is that effective financial management is so difficult inside the healthcare industry as opposed to other industries. Not for profit financial environment Not for profit financial environment can simply be identified by their name and that they have a no profit purpose. A prime example of a not for profit organization is St. Mary’s Hospital located in Wisconsin Serving South Central Wisconsin since 1912, St. Mary's Hospital offers a wide variety of health and wellness services ("St. Mary's Hospital", 2011). St. Mary's offers a full range of inpatient and outpatient treatment and diagnostic services in primary care and nearly all specialties. However, dealing with the financial structure of a not for profit organization, there is no ownership interest that can be transferred. Keeping this fact in mind, the most logical accounting for this type of financial environment would be fund accounting. With this case the main emphasis is put on resource accountability. Not for profit organizations do not pay taxes but they do have...
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