Financial Reporting Paper Institutional Affiliation Students Name Course Professor Semester Financial Reporting Paper Financial accounting standards Board statement no. 117 establishes a requirement for all not for profit organizations to report financial information that is relevant understandable and comparable to other financial statements of other organizations. In specificity it imposes obligations on this organizations to publish financial statements to reflect necessary information focusing on the entity as a whole for use by internal and external users primarily on the statement of activities and cash flows. Reporting amounts relating to total assets liabilities net assets in the financial statements. The statement further imposes an obligation on this entities to classify the organization's net assets revenue expenses gains and any losses as a and time restrictions totaling to 178 353 198 dollars. A close examination of the term excess economic benefit reveals that an excess benefit transaction includes the economic advantage gained by the applicable tax exempted organization whether directly or indirectly to or for the use by an incompetent employee or person with adverse economic value for the organization as it will have no recordable value of consideration for the organization. Planned Parenthood of America Inc. and Related Entities recorded a loss on employee compensation amounting to 82 404 398 dollars as recorded in the consolidated statement of activities. References Planned Parenthood of America Inc. and Related Entities 2017 Annual Consolidated Financial Statements and Supplementary information nd Retrieved January 08 2018 from https://www.plannedparenthood.org/uploads/filer_public/1b/e3/1be3a23a-59f5-42c7-bc6b-723a92e6a212/fy15_plannedparenthoodfederation_fs_final.pdf. [...]
Analyze the financial statements and audit report of a not-for-profit organization readily and publically available on an active website. PLANNED PARENTHOOD Create a 700- to 1,050-word overview of one not-for-profit organization in an area of interest to your team and review the financial statements and audit report for the organization. Address the following: Evaluate how the selected not-for-profit's financial statements conform to Financial Accounting Standards Board (FASB) guidance in Statement No. 117, Financial Statements of Not-for-Profit Organizations. Compare the organization's reporting of pledges and contributions to its reporting of exchange transactions. How should they be recorded and subsequently reported in the financial statements. Explain the impact if your not-for-profit confers excess economic benefits on disqualified persons.