What is recorded in the operating section of the cash flow statement for a not-for-profit (NFP)?
Cash inflows and outflows from the ordinary course of the not-for-profit organizations business activities will be included in the operating section of the statement of cash flows. These will include all cash sources not identified as investing or financing sources and uses. These will include items such as:
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What are the financial reporting objectives for a NFP or government entity?
The overall objective of financial reporting of nonbusiness organizations is to provide financial statement readers with the following: 1) Information useful in making resource allocation decisions – Financial reporting by nonbusiness organizations should provide lenders and those making financial decisions based on the statements with available information in order to come to a decision as […]
What does the cash flow statement for a not-for-profit (NFP) include?
Like reporting for private organizations, the statement of cash flows will report the statements as operating activities, investing activities, and financing activities. FASB ASC 230 provides guidance on the presentation of the statement of cash flows for nongovernmental not-for-profit organizations: