Cash-Basis Financial Statements (2)

The authors believe that, even in cash-basis statements, certain disclosures should be made to fully inform readers of matters affecting the financial situation of the organization. These include information about, at least, the following (to the extent applicable to the organization). (After each item is shown the source, in GAAP, of the requirement.)

• Accounting policies and any changes in the policies used (APB 20, 22)

• Related parties (SFAS 57, SOP 94-3)

• Commitments, contingencies, and possible impairments of recorded assets (SFAS 5, 121)

• Extraordinary items, prior period adjustments, and similar unusual matters (APB 9, 30)

• Major categories of fixed assets (if capitalized) (APB 12)

• Major categories, and fair market value, of investments (SFAS 107, 124)

• Mergers with other organizations (APB 16)

• Employee benefits (SFAS 87, 106, 112)

• Credit risk and information about financial derivatives (SFAS 105, 119)

• Restrictions on contributions and net assets (SFAS 116, 117)

• The format requirements of SFAS 117

• Joint costs of multipurpose activities (SOP 98-2)

Taken From : Wiley Not-for-Profit Accounting Field Guide 2003

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