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3.1 Overview of the statement of activities
Publication date: 27 May 2020
us NFP guide
In the NFP financial reporting model, the statement of financial performance is referred to as a statement of activities (or, in the case of NFP HCOs, a statement of operations). The NFP reporting requirements are based on the income statement concepts used by business entities, and, in general no more stringent. However, some differences exist in light of NFP-specific characteristics and transactions. For example:
- The NFP statement of activities classifies and reports activity using two broad net asset classifications: with donor restrictions and without donor restrictions. If an NFP regularly receives significant amounts of contributions and investment income that are donor-restricted, the face of the statement will often display separate columns for the activity in each class.
- With the exception of NFP HCO reporting, the NFP model does not employ the business entity concepts of earnings and other comprehensive income. Thus, the “bottom line” of the statement of activities is the total change in net assets during a period, which is analogous to total comprehensive income for a business enterprise.
This chapter provides an overview of the key elements of the statement, including its format, organization, and contents. The presentation requirements are in ASC 958-205, Not-for-Profit Entities—Presentation of Financial Statements, and ASC 958-220, Not-for-Profit Entities—Income Statement—Reporting Comprehensive Income. Incremental requirements for NFP HCOs (which limit some of the flexibility available to other NFPs) are in ASC 954-205, Health Care Entities—Presentation of Financial Statements, and ASC 954-220, Health Care Entities—Income Statement—Reporting Comprehensive Income.
PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
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