Not-for-Profit Financial Statements

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Question

Why is a board-designated fund not donor-restricted?

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Answer

The board can reverse the designation.

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Question

How are NFP mergers and acquisitions accounted for differently?

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Answer

Mergers use carryover; acquisitions use acquisition accounting.

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Question

When is a restriction for acquiring a long-lived asset released?

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Answer

When the asset is placed in service.

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Question

Why is a grant with a barrier and right of return conditional?

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Answer

No revenue until the barrier is substantially met.

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