Course detail

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Contents

• Introduction
• Prerequisites
  
• Course Level
  
• Topics
  
• Course Benefits
  
• Teaching Method
  
• Continuing Professional Education
  
• Venue
  
  

Introduction

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Not-for-profit accounting is a specialized field that is receiving a heightened level of interest. A growing number of financial statement preparers and users need to understand the unique and challenging accounting and financial reporting issues related to the not-for-profit sector. This three-day course focuses on three key areas:

• Distinguishing characteristics of not-for-profit entities and their financial accounting and reporting

• Accounting areas that are unique to not-for-profit entities

• General areas of accounting that are applicable to the accounting and financial reporting of not-for-profit entities

Critical accounting and reporting issues that go beyond mere number-crunching are discussed in this course. Participants are shown the way that not-for-profit entities conduct and shape their accounting and reporting practices. By reference to accepted accounting practices in the sector, delegates leave this course with practical knowledge of the international accounting rules (US GAAP, IFRS and other appropriate international accounting standards) that are applicable to the not-for-profit sector. Participants learn, for example, the best practice presentation aspects of non profit entities' financial statements. Participants relate the standards to pledge contributions, donated materials and services, special events, and disclosure requirements. Discussions include application of grant accounting rules to both asset and income-related grants, as well as accounting for direct and indirect costs, cost allocation methods and rates, functional expense classification and other expenditure-related issues that are unique to not-for-profit entities. Other topics include the principles of fund accounting and how these relate to general purpose financial statements, how to account for collections, and functional reporting. In addition, comparisons with US GAAP (primarily FAS 116/ASC 958-605 Accounting for Contributions Received and Contributions Made, FAS 117/ASC 958-205 Financial Statements of Not-for-Profit Organizations, and Statement of Position 98-2/ASC 958-720 Accounting for Costs of Activities of Not-for-Profit Organizations and State and Local Governmental Entities That Include Fund Raising) are integrated throughout the course materials so that participants are well informed on international best practices, and also made aware of issues that may arise during the convergence of IFRS and US GAAP requirements.

Case studies and financial statements are used throughout the program to promote discussion and illustrate the real-world application of financial standards to entities in the not-for-profit sector. The program also includes a brief overview of the accounting for specific types of not-for-profit entities, such as microfinance institutions, educational institutions and other charitable organizations.

Last but not least, the course includes a concise section on compliance requirements of various types of governmental grants received by not for profit entities.

This comprehensive course answers questions such as:

• What items typically appear on a not-for-profit entity's financial statements?

• How are recognition and measurement rules applied to receivables, inventory, long-lived assets, website development, leases, financial assets and liabilities, revenue, employee compensation, other expenses?

• How should revenue and assets obtained through non-exchange transactions be accounted for?

• When are pledges, donated goods and government grants recognized in the financial statements and how are they measured?

• How are indirect costs allocated to programs and how are functional expense classifications identified?

• What impending accounting issues are likely to affect non-profit entities?

Prerequisites

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Intermediate understanding of accounting principles based on any international standards. Working experience with not-for-profit sector accounting is also beneficial. No advance preparation is required for this course.

Course Level

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Intermediate

Topics

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• Financial Statement Presentation and Disclosure Issues
• Financial statement presentation requirements, including changes effective in the future
• Reporting by function and by nature
• Temporarily restricted, permanently restricted and unrestricted assets
• Commitments and contingencies
• Grant disclosures
• Cash and Cash Equivalents
• Components
• Policy
• Classification
• Receivables
• Contributions, donations and pledges
• Allowance for bad debts
• Other
• Inventory
• Review of IAS 2 Inventory
• Cost components
• Valuation methods
• Indicators of impairment
• Determining net realizable value
• Accounting for impairment
• Long-lived Assets
• Review of IAS 16 Property, Plant and Equipment
• Costs to capitalize
• Depreciation and useful lives
• Special treatment assets (museum collections, historical buildings, library +books, zoo animals, etc.)
• Impairment indicators
• Accounting for impairment
• Financial Assets and Liabilities
• Categories of financial assets and accounting methodology by type
• Financial liability accounting
• Disclosures
• Revenues
• Public support (direct and indirect)
• Contributions (pledges, donated materials and services, special events and membership dues)
• Conditional promises to give (pledges)
• Other (inventory sales, service fees, restriction releases, etc.)
• Non-cash contributions
• Grants and Donations
• Review of IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
• Recognition and measurement of government grants
• Accounting for non-monetary grants
• Restricted grants
• Grants related to assets – alternative presentation methods
• Repayment of government grants
• Low-interest rate loans and other government assistance
• Expenses
• Program services
• Fundraising (including gross vs. net presentation)
• Operations
• Direct and indirect costs
• Joint costs allocation
• Indirect costs allocation (methods and rates)
• Functional expense classification
• Defining and documenting programmatic expenses
• Other issues
• Fund accounting
• Accounting for specific types of not-for-profit entities (microfinance institutions, educational institutions and other charitable organizations)
• Importance of budgets to not-for-profit entities
• Analyzing the financial health of not-for-profit entities
• Differences between cash-based and accrual-based accounting
• Compliance requirements of different types of government grants
• Recent and Upcoming issues
• Recently issued standards, interpretations and their impact on not-for-profit entities
• Proposed IFRS changes that will affect the non-profit sector
• IFRS-US GAAP convergence update
• IASB projects and plans of interest to non-for-profit entities

Course Benefits

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• Learn the IFRS best practice presentation requirements of not-for-profit sector financial statements
• Become familiar with accounting for pledges, donated goods and government grants
• Attain the know-how to account for contributions most efficiently
• Develop the skills to appropriately allocate indirect costs to programs
• Understand how to develop functional expense classifications
• Apply IFRS and US GAAP to sector-specific financial disclosure situations
• Increase awareness of impending issues that will affect not-for-profit entities

Teaching Method

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• Live group instruction with interactive participation encouraged
• Identification of the critical issues affecting the financial reporting of not-for-profit entities
• Succinct examples and cases that illustrate classification and accounting for typical transactions in the non-profit sector
• Presentation and discussion of financial statements and disclosures
• All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials

Continuing Professional Education (CPE)

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24 hours

Venue

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All of our Dubai seminars take place in 4 star professional conference facilities, usually in city-centre downtown hotels like the Marriott, Sheraton or Hilton brands.

Detailed Joining Instructions are sent to all registered delegates by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available.

Coffee and lunch will be provided.