Hi Folks,

I usuallly get confused with reporting of some items whether they are to reported as operating or financing or investing plus the reporting variations b/w commercial accounting vs governmental accounting vs NFP.

So, I just tried to capture few items and their reporting which cause confusion in the tabular form for ease as follows:-

No.	Key Items	Commercial Accounting	Governmental Accounting - Proprietary Funds	Not For Profit Organizations
	Dividends received	Operating	Investing	Operating Exception :-Financing – if restricted to reinvestment
	Dividends paid	Financing	-	-
	Interest received	Operating	Investing	Operating Exception :-Financing – if restricted to reinvestment
	Principal paid	Financing	Financing--capital related	Financing
	Interest paid	Operating	Financing- capital/non-capital	operating - short term loan Financing-long term loan
	Capital/Fixed assets purchased	Investing	Financing	Investing
	Making loans to other entities	Investing	Investing	-
	Obtaining loans/resources & other borrowings	Financing	Financing- capital related	Financing

Do share your inputs and in case, you want to make some changes/additions, do let me know !!

Thanks!

edited on 4/4/2009:-

For NFP:-

1.) interest paid - operating - short term loan

2.) interest paid - financing - long term loan

Divya,

Its a nice summary. I just wanted to make one addition. This is with respect to interest on loan. I went through the simulation and saw that interest on short term loan is treated as operating. Repayment of short term loan is still Financing.

Thanks

Thanks, Sanjana ! Are you referring to Governmental funds or NFP?