A board member has raised a question. We are showing surpus of $11,900...but that's due mostly to a grant for an event next yer. there is no legal agreement that we must even the event. If the grant is excluded, there would be a deficit in 2001....meaning the board has eaten into reserves and may make it more difficult to oeprate in 2002.
DID THE ASSOCIATION HAVE EXCESS OR DEFICIT?
<br>It all depends on when the organization chooses to record the receipt of the grant revenue. According to generally accepted accounting principles (GAAP), an item is considered to be revenue if the following 4 criteria have been satisfied:
This problem involves the fundamentals of accounting