essentials of accounting for governmental and not for profit organizations 13th edition pdf

What is the purpose of GASB?
The GASB establishes accounting and financial reporting standards for U.S. state and local governments that follow generally accepted accounting principles (GAAP).
The Governmental Accounting Research System™ (GARS) provides access to those standards.
What is accounting for not for profit Organisation?
The balance sheet of an NPO is like a normal balance sheet of a company i.e. other profit-making organisations.
For a new balance sheet, the initial investment is shown as a general fund.
Whereas, the respective surplus or deficit is added to the General fund while preparing the balance sheet for the following years.
GAAP consists of a common set of accounting rules, requirements, and practices issued by the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB).
GAAP sets out to standardize the classifications, assumptions and procedures used in accounting in industries across the US.

What are the financial accounting standards for nonprofits?

All nonprofits must provide these four financial statements: A statement of financial position, a statement of activities, a statement of cash flows, and a statement of functional expenses.
All nonprofits are required to classify their assets based on the existence of donor-imposed restrictions.

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