Statement of Cash Flows: Not-for-Profit Financial Reporting

Overview

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

A statement of cash flows is necessary to comply with GAAP, which is required of for-profit and not-for-profit (NFP) businesses alike. However, NFPs are required to comply with unique industry-specific guidance that applies only to them. For example, when an NFP receives cash with a donor-imposed restriction or holds cash for the purposes of a long-term endowment, debt-service reserve, quasi endowment, or future acquisition of property, those activities will require special reporting consideration. This CPE course offers you detail-rich examples and case studies. Learn the nuances of NFP financial reporting and get the information you need to successfully prepare a statement of cash flows. You will have an opportunity to download a sample NFP statement of cash flows, which is included in your course materials.

Note: As of August 1, 2018, course content has been updated to reflect implementation of FASB Accounting Standards Updates (ASUs) effective for most not-for-profit entities for their next financial reporting period, including those related to financial statement presentation (ASU 2016-14) and revenue recognition (ASU 2014-09 and ASU 2018-08).

Highlights

Key Topics

• GAAP industry-specific guidance
• Industry best practices
• Direct and indirect method
• Classification (operating, investment, and financing activities)
• Reconciliation of change in net assets to cash balances
• Effect of donor restrictions on cash flow reporting

Prerequisites

Intermediate

Designed For

Who Will Benefit

• CPAs, financial professionals and NFP board members involved in financial reporting for NFPs or reviewing NFP financial statements.

Objectives

Learning Outcomes

• Determine how to prepare, in accordance with GAAP, a statement of cash flows (SCF).
• Differentiate between operating, financing, and investing activities.
• Determine the effect of a certain transaction or significant event on the reporting entity's SCF.
• Differentiate between direct method and indirect method cash flow statement and identify steps for successful completion of the statements under both methods.