What is Analysis of expenses by function and nature?
In short
Not-for-profits must present an analysis of expenses showing both their function (program services, management and general, fundraising) and their nature (such as salaries, rent and depreciation), in one place.
Key takeaways
- It can be presented on the face of the statement of activities, as a separate statement, or in the notes.
- Program services are reported separately from supporting services.
- Investment expenses are netted against investment return instead.
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
Under ASU 2016-14, which not-for-profit organizations must present an analysis of expenses by both nature and function?