Financial and Accounting Guide for Not-for-Profit Organizations, Eighth Edition 2014 Supplement

CHAPTER 7

Affiliated Organizations, Pass-Through Transactions, and Mergers

7.1 Types of Relationships Often Found

(a) The Fundraising Affiliate of a Parent Organization

*7.2 Definition of the Reporting Entity

*(a) Pass-Through Gifts and Assets Held for the Benefit of Another Organization

*(b) Combined Financial Statements

(i) Reporting of Related Entities by Not-for-Profit Organizations

(ii) Omnibus Changes to Consolidation and Equity Method Guidance for Not-for-Profit Organizations

(iii) Consolidation of Variable Interest Entities

7.3 Mergers of Not-for-Profit Organizations

(b) Not-for-Profit Entities: Mergers and Acquisitions

p. 73, chapter featuring list. Update the title of section 7.2 to “7.2 Accounting and Financial Reporting Issues.”

*p. 73, chapter featuring list. Update the title of section 7.2(b) to “Consolidated Financial Statements.”

*p. 74, second paragraph. Replace “three” with “two.”

p. 74, numbered list. Delete “combined for reporting purposes” from number two in the list and replace it with “reported as a single entity (i.e., consolidated).”

p. 74, numbered list. Delete number three in the list.

7.1 Types of Relationships Often Found

(a) The Fundraising Affiliate of a Parent Organization

p. 74, first paragraph. Delete the fifth sentence, which starts: “Hospitals often do the same . . .”

7.2 Definition of the Reporting Entity

p. 76. Change the section 7.2 title to “7.2 Accounting and Financial Reporting Issues.”

*p. 76, numbered list. Add “Accounting for” prior ...