CPAnet Forum: need help with NFP question (F9supp.)

Active Topics

Memberlist

Help

FAR STUDY GROUP
CPAnet Forum : FAR STUDY GROUP

Topic: need help with NFP question (F9supp.) (

Topic Closed)

Author

Message

<< Prev Topic | Next Topic >>

yukagin
Contributor

Joined: 03 Jun 2010
Online Status: Offline
Posts: 84

Posted: 13 Feb 2011 at 21:00 \| IP Logged

we know that:
- when the 100K in the CD matures in year 11, that 100K
is unrestricted (per
the facts)
- the board designating the 20K doesnt change anything,
as it's the donor's stipulations that make something
restricted, not the internal board

but there doesnt seem to be any indication to me that
anything has been spent on salaries for the preschool
program. so i cant see how/if/when the 8000 interest
revenue was ever released
from temporarily restricted??????

__________________
REG82,BEC79,FAR 5/31/11 (waiting)

yukagin
Contributor

Joined: 03 Jun 2010
Online Status: Offline
Posts: 84

Posted: 13 Feb 2011 at 21:04 \| IP Logged

MAII wrote:

Since the 8000 interest revenue is also
expires in year 11 it is released from restriction.

Where does it say that the interest revenue is released in
year 11 as it says it must be used to finance salaries? i
thought it only says the CD is released in year 11?

__________________
REG82,BEC79,FAR 5/31/11 (waiting)

MAII
Newbie
Newbie

Joined: 28 Jan 2011
Online Status: Offline
Posts: 17

Posted: 13 Feb 2011 at 21:47 \| IP Logged

There would be no interest revenue if there was no CD. So once the CD matured, the restriction as well as the interest revenue expired. Causing it to no longer be temporarily restricted.

__________________
REG - 80
FAR - 72. 2/19/11 -
BEC -
AUD -

MAII
Newbie
Newbie

Joined: 28 Jan 2011
Online Status: Offline
Posts: 17

Posted: 13 Feb 2011 at 22:00 \| IP Logged

Okay...let me try this one more time. Per Wiley, "if a donor makes a contribution and indicates that the contribution should be used in a future period, that contribution would be recorded as a revenue in the temporarily restricted net asset class and then transferred to the unrestricted net asset class in the time period specified by the donor."

Per your question, the 8k was released from temp. restriction when the time restriction was met. Which in this case is 11 years.

__________________
REG - 80
FAR - 72. 2/19/11 -
BEC -
AUD -

Sorry, you can NOT post a reply.
This topic is closed.

<< Prev Page of 2

Printable version

You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum