Term
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Definition
| 1) restricted Fund method 2) Deferral method |
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Term
| Resitricted fund method uses |
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Definition
| generally used when there are a signifiacnt portion of restricted contrinutions for programs and projects. Different types of funds presented in seperate individual columns. |
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Term
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Definition
| General, Capital Asset fund, restricted funds, endowment fund |
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Term
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Definition
| all unrestricted assets,liabilites, revenues, expenses shown in this column |
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Term
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Definition
| capital assets, any related debt, and related rev/exp |
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Term
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Definition
| all restrcited assets, liabilites, revenues and expenses. Can be interanl or external restrictions |
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Term
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Definition
| invested assets where contributed amounts connot be used until specified time has elapsed. Recognize endowment contrinbutions upon recept. |
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Term
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Definition
- restricted contributions with specific reporting column - revenues recognized when received
- Other restrcited contributions - revenue derferred until fiscal year in which expenses incurred
-unrestricted contributions recognized in general funds as revenue in year they are received |
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Term
| Pro and con of restricted fund method |
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Definition
Pro: able to better track restricted contributions for specific programs/projects
Con: could be considered more complex in case of presentation and reporting purposes. |
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Term
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Definition
| Used primarly by NPO's that do not have a large amount of restrictions. |
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Term
| How are contributions recognized (defferal method) |
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Definition
-endowement contriutions recongized immeditaly to net assets as the funds can never be touched
-restricted contrinutions woul dbe deferred until matched with expenses
-unrestricted contrinution recognied upon receipt -contribution land recognized as increase to net asests -contrinution capital assets are deferred and amortized into income over useful life of asset. |
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Term
| defferal method (donation of goods and services) |
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Definition
option to record, but can only do so when:
-a FV can be reasonably est. |
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Term
| deferral method (tangible capital assets) |
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Definition
- record at FV at contribution date.
-if average annual revenues for current and proceeding year is less than 500k entity has option to : 1- capitalze and amortize capital asset 2- capitalize capital asset but not record amortization 3- expense capital asset purchase in the year occured. |
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Term
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Definition
| considered less complex with formal as the same as for profit with excpetion of deferred contrinutions and that retained earnings called net assets |
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Term
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Definition
May not be as relevant to users as there is no classification between restrcited and unresitrcited funds.
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Term
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Definition
-NPO's must file a T3010 charity return 6 months after year end
-NPO's have to remit GST similar to for profit entities with the excpetion of small suppliers (less than 30k) |
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