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Track 14 of 19 · Specialized

Not-for-profit accounting and audit (ASC 958 and Form 990)

Accounting for not-for-profit entities under ASC 958 and the audit work that goes with it: net asset classes, contributions and conditions, in-kind gifts, functional expense and joint costs, liquidity, endowments, split-interest agreements, audit risks and the Form 990 tie-out.

14 lessonsAbout 65 minASC 958 · ASU 2016-14 · ASU 2018-08 · ASU 2020-07 · Form 990
0 of 14 complete
Syllabus

For: Auditors and accountants who serve charities, foundations, associations and other tax-exempt organizations.

  1. 01ASC 958 and the not-for-profit audit: what is different and what this track coversWho follows ASC 958, the statements a not-for-profit presents, why these entities get audited, and how the fourteen lessons in this track fit together.5 min · worked example · 4 self-check questions
  2. 02Net assets with and without donor restrictions under ASU 2016-14How ASU 2016-14 replaced three net asset classes with two, where board designations go, how restrictions are released, and what the notes must disclose.4 min · worked example · 3 self-check questions
  3. 03Contributions versus exchange transactions under ASU 2018-08The commensurate value test in ASC 958-605-15-5A, its five indicators, third-party payer arrangements, and why a grant label never settles the question.5 min · worked example · 4 self-check questions
  4. 04Conditional contributions: barriers, right of return and right of releaseThe two-part test for a donor-imposed condition, the three barrier indicators, the ambiguity presumption, and how refundable advances and disclosures work.4 min · worked example · 4 self-check questions
  5. 05Contributed nonfinancial assets (gifts in kind) under ASU 2020-07What counts as a contributed nonfinancial asset, the separate line ASU 2020-07 requires, the disclosures by category, and the valuation risks to test.4 min · worked example · 4 self-check questions
  6. 06Functional expense reporting and joint cost allocation under ASC 958-720Program, management and general and fundraising classes, the nature-by-function analysis, allocation methods, and how joint costs of mixed appeals are tested.4 min · worked example · 4 self-check questions
  7. 07The liquidity and availability disclosure: what ASC 958-210-50-1A requires and how to audit itThe qualitative and quantitative liquidity disclosures, the limits that reduce availability, a worked availability table, and the evidence to gather.4 min · worked example · 4 self-check questions
  8. 08Endowments, UPMIFA and underwater fundsDonor-restricted and board-designated endowments, how UPMIFA extends restrictions to investment return, appropriation, and underwater fund disclosures.5 min · worked example · 4 self-check questions
  9. 09Split-interest agreements: remainder trusts, lead trusts and gift annuitiesThe main split-interest agreement types, how the NFP measures its interest, net asset classification under ASC 958-30-45, and the note disclosures to test.6 min · worked example · 5 self-check questions
  10. 10Exchange revenue in not-for-profits: tuition, memberships and special events under ASC 606Applying the ASC 606 model to tuition, membership dues and special events, splitting the contribution element, and the IRS quid pro quo disclosure rule.5 min · worked example · 4 self-check questions
  11. 11Auditing contributions and grants: completeness, existence, conditions and restrictionsAudit procedures for gifts, pledges and grants: completeness tests, pledge confirmations, condition and restriction reviews, gifts in kind and cutoff.4 min · worked example · 4 self-check questions
  12. 12Audit risks particular to not-for-profitsRisks that recur in NFP audits: thin controls, diversion of assets, restriction compliance, cost allocation, related parties, exempt status and going concern.5 min · worked example · 4 self-check questions
  13. 13Form 990 overview and the tie-out to audited statements: Parts VIII to XI and Schedule DWhich return an exempt entity files, how Form 990 is organized, and how Parts VIII, IX, X and XI and Schedule D Parts XI and XII reconcile to audited totals.5 min · worked example · 4 self-check questions
  14. 14Schedule B and the Part VI governance questions an auditor readsWho appears on Schedule B, the 2% special rule, public inspection limits, and what Form 990 Part VI answers tell an auditor about governance and controls.5 min · worked example · 4 self-check questions
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