Help prepare written answers to the following:
1. Provide examples of resources that are temporarily restricted as to: (a) purpose; (b) time; and (c) the occurrence of a specific event. Provide an example of permanently restricted resources.
2. A not-for-profit organization receives a restricted gift. When, and in which type of fund, should it recognize the revenue? When, and in which type of fund, should it recognize the related expense? What is the reason for the apparent inconsistency between the fund types in which the revenues and expenses are reported?
3. Statements of Financial Accounting Standards (SFAS) 116 and 117 Executive Summary
Write a one-page Executive Summary assessing the requirements of SFAS 116 and 117 and its impact on the financial statements.
Be sure to properly cite all your sources.© BrainMass Inc. brainmass.com June 4, 2020, 12:15 am ad1c9bdddf
Temporarily restricted resources:
An individual gives $2,500 to pay for 5 students to participate in a camp run by the organization.
An individual donated $500,000 which can't be spent by the organization in 10 years.
(c) the occurrence of a specific event
An individual donated $35,000 to an organization which it can use for the purchase of computers.
Permanently restricted resources:
An individual gives $100,000 to provide scholarships for campers in perpetuity from the interest and investment returns.
When and in which type of fund the gift will be recognized in depends on the ...
The solution discusses not for profit organization restricted resources and gifts.