What is Statement of activities (not-for-profits)?
In short
A not-for-profit's statement of activities reports revenues, expenses, gains and losses and the resulting changes in net assets with and without donor restrictions, and in total net assets.
Key takeaways
- All expenses are reported as decreases in net assets without donor restrictions.
- When a restriction is met, net assets are reclassified ('released') from with to without donor restrictions.
- An intermediate measure of operations is optional but must be described if used.
Where it's tested
FAR: Not-for-Profit Accounting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A not-for-profit spends donor-restricted funds on the purpose the donor specified. How is this reported in the statement of activities?