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CPE Self-Study

Statement of Functional Expenses: Not-for-Profit Financial Reporting

  • $59.00-$69.00
    Statement of Functional Expenses: Not-for-Profit Financial Reporting Availability : Online Access Product #: 165424
    AICPA Member: $59.00
    Non-Member: $69.00
  • Contact Sales
    Contact a representative for group pricing. 800.634.6780 (Option 1) | Contact Us Product #: GT-NFP2-AFR4

This video-based CPE course is included in Not-for-Profit Certificate II. It can be purchased individually or as a part of the Not-for-Profit Certificate II - Financial Reporting track.

Like many other businesses, not-for-profits (NFPs) incur costs such as salaries, rent and utilities. Unique to NFPs is the requirement that those expenses be classified in the financial statements according to purpose, or function, for which they were used.

The statement of functional expenses assists readers of the NFP's financial statements in associating expenses with the service efforts and accomplishments of the organization. Users of this information include donors, volunteers, rating agencies, creditors and constituents of the NFP. A well-designed expense allocation system and corresponding statement of functional expenses is of utmost importance for successful reporting in the NFP environment.

This CPE course offers you detail-rich examples and case studies that will help you allocate costs and accurately prepare the statement of functional expenses.

Included in the course resources are various financial statement examples and common ratios used in analyzing NFP financial statements.

Learning Objectives

  • Determine how to prepare, in accordance with GAAP, a statement of functional expenses
  • Identify the most appropriate statement presentation options, considering the complexity of the entity
  • Determine the effect of a particular transaction on the reporting entity's statement of functional expenses

Topics Discussed

  • Financial statement preparation
  • Expense allocation methodology
  • Program and supporting activities
  • Fundraising expenses
  • Joint costs
  • Voluntary health and welfare organizations
  • Common errors and pitfalls

Discounts

Not-for-Profit Section Members Receive Additional Savings!

When you log into this website with your AICPA member user account, the section/credential discount will be automatically applied during checkout. Should you have any questions or encounter any issues, please contact the AICPA Service Center at 888-777-7077 or service@aicpa.org.

Find out more information on the NFP Section.

System Requirements

About the Authors

Clark Nuber PS

About the Publisher

American Institute of CPAs

The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with more than 418,000 members in 143 countries, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting.

The AICPA sets ethical standards for the profession and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination, and offers specialized credentials for qualified professionals who concentrate on personal financial planning; forensic accounting; business valuation; and information management and technology assurance. With The Chartered Institute of Management Accountants (CIMA), it offers the Chartered Global Management Accountant (CGMA) designation, which sets the global benchmark for quality and recognition in management accounting.

The AICPA and CIMA also make up the Association of International Certified Professional Accountants (the Association), which represents public and management accounting globally, advocating on behalf the public interest and advancing the quality, competency and employability of CPAs, CGMAs and other accounting and finance professionals worldwide.

The AICPA maintains offices in New York, Washington, DC, Durham, NC, and Ewing, NJ.