Financial Management for Nonprofit Organizations, 3rd Edition

CHAPTER 6UNDERSTANDING FINANCIAL ACCOUNTING BASICS AND FINANCIAL STATEMENTS

1. 6.1 INTRODUCTION
2. 6.2 FINANCIAL STATEMENT USERS AND USES
   1. (a) What Do Donors’ Representatives Say?
   2. (b) External and Internal Financial Statements
   3. (c) Who Does the Accounting?
   4. (d) Roles of the Controller and Treasurer
3. 6.3 ACCOUNTING BASICS
   1. (a) Financial Standards and Standards Setters
   2. (b) Fund Accounting Versus Consolidation
   3. (c) Cash Basis Versus Accrual Basis Accounting
   4. (d) Audit, Review, or Compilation?
4. 6.4 THREE FINANCIAL STATEMENTS
   1. (a) Statement of Financial Position or Balance Sheet
   2. (b) Statement of Activities or Statement of Net Revenues
   3. (c) Statement of Cash Flows
   4. (d) Statement of Functional Expenses
   5. (e) Financial Accounting Standards 116 and 117
   6. (f) What About the IRS Form 990 Tax Return?
   7. (g) Healthcare and Human Service Agency Financial Statements
   8. (h) Educational Institution Financial Statements
   9. (i) Cautions for Financial Statement Interpretation
5. 6.5 THE AUDIT AND THE AUDIT COMMITTEE
6. 6.6 FINANCIAL STATEMENT USERS AND USES IN PRACTICE
7. 6.7 SOCIAL ACCOUNTING
8. 6.8 ADDITIONAL RESOURCES
   1. (a) Sources for Nonprofit Accounting and Accounting Standards
   2. (b) Sources for Nonprofit Accounting Software Reviews
   3. (c) Sources for Nonprofit Accounting Firm Contacts
   4. (d) Source for Nonprofit Audit Committee Toolkit
   5. (e) Sources for Social Accounting Information and Techniques
9. APPENDIX 6A: REVISED FINANCIAL STATEMENT FORMAT – ACCOUNTING STANDARDS UPDATE 2016-14

6.1 INTRODUCTION

Financial statements communicate ...