You will submit a report as well as the necessary spreadsheets.
Specifically, the following critical elements must be addressed:
IV. Nonprofit and Governmental: Consider that your company is a nonprofit entity and a governmental entity. Discuss the reporting requirements for each and how they differ from a for-profit entity.
A. Explain how you would address compliance with GAS in nonprofit and governmental financial statements.
B. Explain how the analysis of nonprofit and governmental company statements differs from analysis of traditional financial statements. Provide examples to support your response.
C. Compose example financial statements for your company as a nonprofit entity and as a governmental entity. Ensure all information is entered accurately and the statements are compliant with GAS.
Answer preview
The requirements include Budget and cash flow. The focus is on the budget and how the finances are spent and it’s clearly defined by the GAS standards. Non-Profit is always confined to both Federal and State filing requirements and they are referred as tax-exempt failure to which they would lose their tax-exempt status. The federal government requires all the tax-exempt organizations to submit Form 990 series and those whose revenue is below $50000 can specifically submit the Form 990-N (postcard). The states have various requirements unique to them. The governmental entities provide revenue reports for compliance with the budget and the report focuses on promoting accountability on how the governmental resources are utilized (Bryce, 2017). This reporting is usually outlined by the GASB for state and local government entities while FASAB defines for the federal government entities. The reporting by NGOs and the governmental entities differs with the profit entity in that the profit entity focuses on profit generation activities to the members through the defined procedures by GAAP which include Balance Sheets, Income Statements.(631words)