This disclosure checklist has been prepared using the accounting and financial reporting guidance contained in pronouncements up to and including FASB Accounting Standards Updates No. 2017-04 that are effective. For Accounting Standards Updates that are not yet effective, the reader should review the accounting requirements contained in applicable chapters and review the particular Accounting Standards Update for disclosure requirements. This checklist has been prepared with careful consideration to ensure its accuracy and completeness. However, a checklist does not substitute for professional knowledge and judgment. In addition, this checklist focuses primarily on footnote disclosures for financial statements. For requirements as to the content and format of financial statements themselves, readers should refer to the applicable chapters of this guide. Financial statement preparers and auditors using this checklist should recognize their responsibility to determine the adequacy of disclosures for financial statements. Accordingly, this checklist should be used only as one tool in meeting these responsibilities.
Summary of Significant Accounting Policies
Does a note to the financial statements contain a summary of significant accounting policies?
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If the organization prepared its financial statements on a comprehensive basis of accounting other than generally accepted accounting principles (GAAP), was disclosure made on the basis of presentation and how does that basis differ from GAAP? (FASB ASC 835-20-55)
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Does disclosure of significant accounting policies encompass important judgments as to the appropriateness of principles concerning recognition of revenue, and allocation of asset costs to current and future periods? (FASB ASC 235-10-50)
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Has the need been considered for disclosure of the impact of a new FASB Statement issued but not yet effective where restatement of prior periods will be required?
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Nonmonetary Transactions
Do the notes disclose the nature of these transactions, the basis of accounting used, and gains or losses recognized on the transfers?
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Related-Party Transactions
Are the following disclosures made of material related-party transactions, other than compensation agreements, expense allowances, and similar items:
The nature of the relationship?
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A description of the transactions, including transactions to which no amounts or nominal amounts have been assigned, and such other information to understand the effects of the transactions on the financial statements?
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Dollar amounts of the transactions for each period that an operating statement is presented?
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Amounts due from related parties as of the date of each balance sheet presented? (FASB ASC 850-10-50)
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Is the nature and extent of any leasing transactions with related parties disclosed? (FASB ASC 840-10-50)
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Accounting Changes
For changes in accounting principles:
The nature of and reason for the change in accounting principle, including an explanation of why the newly adopted accounting principle is preferable.
_____
The method of applying the change, and
A description of the prior-period information that has been retrospectively adjusted, if any.
_____
The effect of the change on income from continuing operations, the appropriate captions of changes in the applicable net assets, any other affected financial statement line item for the current period and any prior periods retrospectively adjusted. Presentation of the effect on financial statement subtotals and totals other than income from continuing operations and other appropriate captions of changes in the applicable net assets is not required.
_____
The cumulative effect of the change on the components of net assets in the statement of financial position as of the beginning of the earliest period presented.
_____
If retrospective application to all prior periods is impracticable, disclosure of the reasons therefor, and a description of the alternative method used to report the change.
_____
If indirect effects of a change in accounting principle are recognized
A description of the indirect effects of a change in accounting principle, including the amounts that have been recognized in the current period.
_____
Unless impracticable, the amount of the total recognized indirect effects of the accounting change that are attributable to each prior period presented. (FASB ASC 250-10-50)
_____
For changes in accounting estimates, the effect on income from continuing operations and the other appropriate captions of changes in the applicable net assets of the current period for a change in estimate that affects several future periods, such as a change in service lives of depreciable assets. (FASB ASC 250-10-50)
_____
For changes in reporting entity, do the financial statements of the period of the change describe the nature of the change and the reason for it? In addition, the effect of the change on income before extraordinary items and the appropriate captions of changes in the applicable net assets should be disclosed for all periods presented. (FASB ASC 250-10-50)
_____
For correction of errors in previously issued financial statements, has the entity disclosed that its previously issued financial statements have been restated, along with a description of the nature of the error? The entity also is required to disclose the following:
The effect of the correction on each financial statement line item affected for each prior period presented.
_____
The cumulative effect of the change on the appropriate components of net assets in the statement of financial position, as of the beginning of the earliest period presented.
_____
In addition, the entity should make the disclosures of prior-period adjustments and restatements. (FASB ASC 250-10-50)
_____
Disclosures Relating to Leases (FASB ASC 840)
Lessors
For operating leases, is the following information disclosed:
Cost and carrying amount of property on lease or held for leasing by major classes and the amount of accumulated depreciation as of the date of the latest statement of financial position presented?
_____
Minimum future rentals on noncancelable leases as of the date of the latest statement of financial position presented in the aggregate and for each of the five succeeding years?
_____
Total contingent rentals in operations for each period for which a statement of activities is presented?
_____
For sales-type and direct financing leases, are the following disclosed:
Appropriate components of the net investment in the leases as of the date of each statement of financial position presented?
_____
Future minimum lease payments to be received for each of the five succeeding fiscal years as of the date of the latest statement of financial position presented?
_____
Total contingent rentals included in operations for each period for which a statement of activities is presented?
_____
Do the notes provide a general description of the lessor's leasing arrangements?
_____
Lessees
For capital leases, are the following disclosed:
Gross amounts of assets and the accumulated depreciation recorded by major classes as of the date of each statement of financial position presented?
_____
The lease obligations classified as current and long-term?
_____
Future minimum lease payments as of the latest statement of financial position presented in the aggregate and for each of the five succeeding fiscal years, with separate deductions for executory costs and imputed interest?
_____
Total future minimum lease sublease rentals under noncancelable subleases as of the date of the latest statement of financial position presented?
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Total contingent rentals incurred for each period for which a statement of activities is presented?
_____
For operating leases that have initial or remaining noncancelable lease terms in excess of one year, is the following information disclosed:
Future minimum rental payments required as of the latest statement of financial position presented in the aggregate and for each of the five succeeding fiscal years?
_____
Total minimum rentals under noncancelable subleases as of the date of the latest statement of financial position presented?
_____
For all operating leases, is the following information disclosed:
Rental expense for each period for which an operating statement is presented with separate amounts for minimum rentals, contingent rentals, and sublease rentals?
_____
A general description of the lessee's leasing arrangements, including
Basis for determining contingent rentals? _____
Terms of any renewal or purchase options or escalation clauses? _____
Restrictive covenants? _____
Commitments and Contingencies (See also Y. Income Taxes)
Are the nature and amount of accrued loss contingencies disclosed? _____
For loss contingencies not accrued, do the notes disclose the nature of the contingency and an estimate of possible loss, a range of loss, or a statement that such estimate cannot be made? _____
Are guarantees or any moral obligations assumed by the entity disclosed? _____
Are the following disclosures made for unconditional purchase and other obligations not recorded on the balance sheet: (FASB ASC 440-10)
Nature and term of the obligation? _____
Amount of the fixed and determinable portion of the obligations as of the statement of financial position date and for each of the five succeeding fiscal years? _____
Nature of any variable components of the obligation? _____
Amounts purchased for each period for which an operating statement is presented? _____
Is disclosure made of conditions that raise a question as to the entity's ability to continue as a going concern and viable plans to overcome this situation? _____
Are gain contingencies adequately disclosed? _____
Are disclosures provided for unused letters of credit and assets pledged for security? _____
Are any material violations of legal and contractual provisions disclosed? _____
If the organization has failed to maintain an appropriate composition of cash or other assets in amounts needed to comply with all donor restrictions, are the amounts and circumstances disclosed? _____
If there is a reasonable possibility that noncompliance with donor-imposed restrictions has resulted in a material contingent liability having been incurred at the financial statement date, could lead to a material loss of revenue, or could cause inability to continue as a going concern, are the amounts and circumstances disclosed? _____
Are loss contingencies disclosed when there is a reasonable possibility that a loss may have been incurred? _____
If the organization has provided any guarantees, has the following information been disclosed about each guarantee, or each group of similar guarantees, even if the likelihood of the guarantor's having to make any payments under the guarantee is remote, except as provided in item 13 with respect to the disclosure specified in b. below (FASB ASC 460-10-50):
The nature of the guarantee, including the approximate term of the guarantee, how the guarantee arose, and the events or circumstances that would require the guarantor to perform under the guarantee. _____
The maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee. The maximum potential amount of future payments shall not be reduced by the effect of any amounts that may possibly be recovered under recourse or collateralization provisions in the guarantee (which are addressed under d. below). If the terms of the guarantee provide for no limitation to the maximum potential future payments under the guarantee, that fact shall be disclosed. If the guarantor is unable to develop an estimate of the maximum potential amount of future payments under its guarantee, the guarantor shall disclose the reasons why it cannot estimate the maximum potential amount. _____
The current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee (including the amount, if any, recognized under FASB ASC 450-20), regardless of whether the guarantee is freestanding or embedded in another contract. _____
The nature of (1) any recourse provisions that would enable the guarantor to recover from third parties any of the amounts paid under the guarantee, and (2) any assets held either as collateral or by third parties that upon the occurrence of any triggering event or condition under the guarantee, the guarantor can obtain and liquidate to recover all or a portion of the amounts paid under the guarantee. The guarantor shall indicate, if estimable, the approximate extent to which the proceeds from liquidation of those assets would be expected to cover the maximum potential amount of future payments under the guarantee. _____
For product warranties and other guarantee contracts that are excluded from the initial recognition and initial measurement requirements of FASB ASC 460-10 (collectively referred to as product warranties), a guarantor is not required to disclose the maximum potential amount of future payments specified in item 12b above. Instead, the guarantor is required to disclose for those product warranties the following information:
The guarantor's accounting policy and methodology used in determining its liability for product warranties (including any liability [such as deferred revenue] associated with extended warranties). _____
A tabular reconciliation of the changes in the guarantor's aggregate warranty liability for the reporting period. _____
Has the entity disclosed the following information about each obligation, or each group of obligations, resulting from joint and several liability arrangements within the scope of ASU 2013-04:
The nature of the arrangement, including:
How the liability arose? _____
The relationship with other co-obligors? _____
The terms and conditions of the arrangement? _____
The total outstanding amount under the arrangement, which shall not be reduced by the effect of any amounts that may be recoverable from other entities? _____
The carrying amount, if any, of an entity's liability and the carrying amount of a receivable recognized, if any? _____
The nature of any recourse provisions that would enable recovery from other entities of the amounts paid, including any limitations on the amounts that might be recovered? _____
In the period the liability is initially recognized and measured or in a period the measurement changes significantly: _____
The corresponding entry? _____
Where the entry was recorded in the financial statements? _____
Subsequent Events
Are financial statements adjusted for any changes in estimates resulting from subsequent events that provide additional information about evidence existing at the balance sheet date? _____
Are events subsequent to the balance sheet date adequately disclosed? _____
Are appropriate disclosures made for contingencies arising subsequent to the balance sheet date? _____
Has the appropriate date through which management has evaluated subsequent events been disclosed, considering whether the organization is a conduit debt obligor? (FASB ASC 855) _____
Are the following pension disclosures provided for employers that are public entities or electing nonpublic entities that sponsor one or more defined benefit pension plans or one or more defined benefit postretirement plans? (FASB ASC 715-20-50)
A reconciliation of beginning and ending balances of the benefit obligation showing separately, where applicable, the effects during the period attributable to each of the following:
Service cost _____
Interest _____
Contributions by plan participants _____
Actuarial gains and losses _____
Foreign currency exchange rate changes _____
Benefits paid _____
Plan amendments _____
Business combinations _____
Divestitures _____
Curtailments _____
Settlements _____
Special termination benefits. _____
(For purposes of these disclosures, the benefit obligation for defined benefit pension plans is the projected benefit obligation and for defined benefit postretirement plans is the accumulated postretirement benefit obligation.)
A reconciliation of beginning and ending balances of the fair value of plan assets showing separately, where applicable, the effects during the period attributable to each of the following:
Actual return on plan assets _____
Foreign currency exchange rate changes _____
Contributions by the employer _____
Contributions by plan participants _____
Benefits paid _____
Business combinations _____
Divestitures _____
Settlements. _____
The funded status of the plans, the amounts not recognized in the statement of financial position, and the amounts recognized in the statement of financial position, including:
The amount of any unamortized prior service cost. _____
The amount of any unrecognized net gain or loss, including asset gains and losses not yet reflected in market-related value. _____
The amount of any remaining unamortized, unrecognized net obligation or net asset existing at the initial date of application of SFAS 87 or SFAS 106. _____
The net pension or other postretirement benefit prepaid assets or accrued liabilities. _____
Any intangible asset and the amount of accumulated other comprehensive income recognized pursuant to FASB ASC 715-30. (For not-for-profit organizations, all changes in net assets flow through the statement of activities, so the amount reported as comprehensive income would be an equivalent amount that would have been reported in the statement of activities.) _____
Information about plan assets:
For each major category of plan assets, which shall include, but is not limited to, equity securities, debt securities, real estate, and all other assets, the percentage of the fair value of total plan assets held as of the measurement date used for each statement of financial position presented. _____
A narrative description of investment policies and strategies, including target allocation percentages or range of percentages for each major category of plan assets presented on a weighted-average basis as of the measurement date(s) of the latest statement of financial position presented, if applicable, and other factors that are pertinent to an understanding of the policies or strategies such as investment goals, risk management practices, permitted and prohibited investments including the use of derivatives, diversification, and the relationship between plan assets and benefit obligations. _____
A narrative description of the basis used to determine the overall expected long-term rate-of-return-on-assets assumption, such as the general approach used, the extent to which the overall rate-of-return-on-assets assumption was based on historical returns, the extent to which adjustments were made to those historical returns in order to reflect expectations of future returns, and how those adjustments were determined. _____
Disclosure of additional asset categories and additional information about specific assets within a category is encouraged if that information is expected to be useful in understanding the risks associated with each asset category and the overall expected long-term rate of return on assets. _____
For defined benefit pension plans, the accumulated benefit obligation. _____
The benefits (as of the date of the latest statement of financial position presented) expected to be paid in each of the next five fiscal years, and in the aggregate for the five fiscal years thereafter. The expected benefits should be estimated based on the same assumptions used to measure the company's benefit obligation at the end of the year and should include benefits attributable to estimated future employee service. _____
The employer's best estimate, as soon as it can reasonably be determined, of contributions expected to be paid to the plan during the next fiscal year beginning after the date of the latest statement of financial position presented. Estimated contributions may be presented in the aggregate:
Combining contributions required by funding regulations or laws, _____
Discretionary contributions, and _____
Noncash contributions. _____
The amount of net periodic benefit cost recognized, the expected rate of return on plan assets for the period, the amortization of the unrecognized transition obligation or transition asset, the amount of recognized gains and losses, the amount of prior service cost recognized, and the amount of gain or loss recognized due to a settlement or curtailment. _____
The amount included within comprehensive income (changes in net assets for not-for-profit organizations) for the period arising from a change in the additional minimum pension liability recognized pursuant to FASB ASC 715-35. _____
On a weighted-average basis, the following assumptions used in the accounting for plans:
Assumed discount rate. _____
Rate of compensation increase (for pay-related plans). _____
Expected long-term rate of return on plan assets specifying, in a tabular format, the assumptions used to determine the benefit obligation and the assumptions used to determine net benefit cost. _____
The measurement date(s) used to determine pension and other postretirement benefit measurements for the pension plans and other postretirement benefit plans that make up at least the majority of plan assets and benefit obligations. _____
The assumed health care cost trend rate(s) for the next year used to measure the expected cost of benefit covered by the plan (gross eligible charges) and a general description of the direction and pattern of change in the assumed trend rates thereafter, together with the ultimate trend rate(s) and when that rate is expected to be achieved. _____
The effect of a one-percentage-point increase and the effect of a one-percentage-point decrease in the assumed health care cost trend rates on:
The aggregate of the service and interest cost components of net periodic postretirement health care benefit cost, and _____
The accumulated postretirement benefit obligation for health care benefits. _____
(For purposes of this disclosure, all other assumptions are held constant, and the effects are measured based on the substantive plan that is the basis of accounting.)
Where applicable, the amounts and types of securities of the employer and related parties included in plan assets, the approximate amount of future annual benefits of plan participants covered by insurance contracts issued by the employer or related parties, and any significant transactions between the employer or related parties and the plan during the period. _____
Where applicable, any alternative amortization method used to amortize prior service amounts or unrecognized net gains and losses (pursuant to FASB ASC 715-30 and FASB ASC 715-60). _____
Where applicable, any substantive commitment, such as past practice or a history or regular benefit increases, used as the basis for accounting for the benefit obligation. _____
Where applicable, the cost of providing special or contractual termination benefits recognized during the period and a description of the nature of the event. _____
An explanation of any significant change in the benefit obligation or plan assets not otherwise apparent in the other disclosures provided under FASB ASC 715-20. _____
Are the following reduced disclosures provided by nonpublic entities? (FASB ASC 715-20-50)
The benefit obligation, fair value of plan assets, and funded status of the plan. _____
Employer contributions, participant contributions, and benefits paid. _____
Information about plan assets
For each major category of plan assets which shall include, but is not limited to, equity securities, debt securities, real estate, and all other assets, the percentage of the fair value of total plan assets held as of the measurement date used for each statement of financial position presented. _____
A narrative description of investment policies and strategies, including target allocation percentages or range of percentages for each major category of plan assets presented on a weighted-average basis as of the measurement date(s) of the latest statement of financial position presented, if applicable, and other factors that are pertinent to an understanding of the policies or strategies such as investment goals, risk management practices, permitted and prohibited investments including the use of derivatives, diversification, and the relationship between plan assets and benefit obligations. _____
A narrative description of the basis used to determine the overall expected long-term rate-of-return-on-assets assumption, such as the general approach used, the extent to which the overall rate-of-return-on-assets assumption was based on historical returns, the extent to which adjustments were made to those historical returns in order to reflect expectations of future returns, and how those adjustments were determined. _____
Disclosure of additional asset categories and additional information about specific assets within a category is encouraged if that information is expected to be useful in understanding the risks associated with each asset category and the overall expected long-term rate of return on assets. _____
For defined benefit pension plans, the accumulated benefit obligation. _____
The benefits (as of the date of the latest statement of financial position presented) expected to be paid in each of the next five fiscal years, and in the aggregate for the five fiscal years thereafter. The expected benefits should be estimated based on the same assumptions used to measure the company's benefit obligation at the end of the year and should include benefits attributable to estimated future employee service. _____
The employer's best estimate, as soon as it can reasonably be determined, of contributions expected to be paid to the plan during the next fiscal year beginning after the date of the latest statement of financial position presented. Estimated contributions may be presented in the aggregate combining (1) contributions required by funding regulations or laws, (2) discretionary contributions, and (3) noncash contributions. _____
The amounts recognized in the statement of financial position, including the net pension and other postretirement benefit prepaid assets or accrued liabilities and any intangible asset and equivalent reported in the statement of activities pursuant to FASB ASC 715-30. _____
The amount of net periodic benefit cost recognized and the amount recognized in the statement of activities arising from a change in the minimum pension liability recognized (pursuant to FASB ASC 715-30). _____
On a weighted-average basis, the following assumptions used in the accounting for the plans: assumed discount rate, rate of compensation increase (for pay-related plans), and expected long-term rate of return on plan assets specifying, in a tabular format, the assumptions used to determine the benefit obligation and the assumptions used to determine net benefit cost. _____
The measurement date(s) used to determine pension and other postretirement benefit measurements for the pension plans and other postretirement benefit plans that make up at least the majority of plan assets and benefit obligations. _____
The assumed health care cost trend rate(s) for the next year used to measure the expected cost of benefits covered by the plan (gross eligible charges) and a general description of the direction and pattern of change in the assumed trend rates thereafter, together with the ultimate trend rate(s) and when that rate is expected to be achieved. _____
Where applicable, the amounts and types of securities of the employer and related parties included in plan assets, the approximate amount of future annual benefits of plan participants covered by insurance contracts issued by the employer or related parties, and any significant transactions between the employer or related parties and the plan during the period. _____
The nature and effect of significant nonroutine events, such as amendments, combinations, divestitures, curtailments, and settlements. _____
Is the amount of cost recognized for defined contribution pension or other postretirement benefit plans during the period disclosed separately from the amount of cost recognized for defined benefit plans, including a description of the nature and effect of any significant changes during the period affecting comparability, such as a change in the rate of employer contributions? (FASB ASC 715-70-50) _____
Is the amount of contributions to multiemployer plans during the period disclosed without disaggregating the amount attributable to pension and other postretirement benefits, but including a discussion of the nature and effect of any changes affecting comparability, such as a change in the rate of contributions? (FASB ASC 715-80-50) _____
Has the following information been disclosed in the notes to its annual financial statements, separately for pension plans and other postretirement benefit plans?
For each annual statement of activities presented, the net gain or loss and net prior service cost or credit recognized in the statement of activities apart from expenses. Those amounts shall be separated into amounts arising during the period and amounts reclassified as components of net periodic benefit cost of the period. _____
For each annual statement of activities presented, the net transition asset or obligation recognized as a component of net periodic benefit cost of the period. _____
For each annual statement of financial position presented, the amounts that have not yet been recognized as components of net periodic benefit cost, showing separately the net gain or loss, net period service cost or credit, and net transition asset or obligation. _____
The amounts of net gain or loss, net prior service cost or credit, and net transition asset or obligation that arose previously and are expected to be recognized as components of net periodic benefit cost over the fiscal year that follows the most recent annual statement of financial position presented. _____
The amount and timing of any plan assets expected to be returned to the not-for-profit employer during the 12-month period, or operating cycle if longer, that follows the most recent annual statement of financial position presented. _____
See Chapter 25 for additional disclosure requirements that will become effective for employers that participate in multiemployer pension and OPEB plans.
Related Entities (FASB ASC 958-810)
Is the following information about for-profit subsidiaries and financially interrelated not-for-profit organizations disclosed:
Where for-profit entities have been consolidated, are any applicable disclosures that would be required by FASB ASC 810-10 provided? _____
Where for-profit entities are accounted for by the equity method, are any applicable disclosures that would be required by FASB ASC 323-10-50 provided, including:
Identification of the for-profit entity and the percentage ownership held by the not-for-profit organization? _____
Where an investee is 20% or more owned, but not accounted for under the equity method, the reasons why the equity method is not used should be disclosed. Where an entity is less than 20% owned, but is accounted for under the equity method, the reasons the equity method is used should be disclosed? _____
The aggregate value of the investment based on the quoted price, when the quoted market price is available? _____
Summarized information about the for-profit entity's assets, liabilities, and results of operations should be disclosed if equity method investments are, in the aggregate, material to the organization's financial position or changes in net assets? _____
If a not-for-profit reporting organization controls a separate not-for-profit organization through a form other than majority ownership or voting interest and has an economic interest in that other organization, and consolidated financial statements are not presented, the notes to the financial statements of the reporting organization should include the following disclosures:
Identification of the other organization and the nature of its relationship with the reporting organization that results in control. _____
Summarized financial data of the other organization including:
Total assets, liabilities, net assets, revenue, and expenses; _____
Resources that are held for the benefit of the reporting organization or that are under its control. _____
The related-party disclosures of FASB ASC 850-10-50 that are described above. _____
If consolidated financial statements of financially interrelated not-for-profit organizations are presented, they should disclose any restrictions made by entities outside of the reporting entity on distributions from the controlled not-for-profit organization to the reporting organization and any resulting unavailability of the net assets of the controlled not-for-profit organization for use by the reporting organization. _____
Are required disclosures provided for any mergers and acquisitions that occurred during the year? See Chapter 24 for disclosure requirements. _____
Risks and Uncertainties
Is a description of the principal services/activities performed by the organization, including a description of each of its major classes of programs and the relative importance of each, and the revenue sources for the organization's services included in the financial statements? (FASB ASC 275-10-50 and 958-205-60) _____
Is an explanation that the preparation of financial statements in conformity with GAAP requires the use of management's estimates included in the financial statements? (FASB ASC 275-10-50) _____
Is disclosure regarding an estimate made when known information available prior to the issuance of the financial statements indicates that it is at least reasonably possible that a change in the estimate will have a material effect on the financial statements within one year and both the criteria in SOP 94-6, para 13, are met? (SOP FASB ASC 275-10-50) _____
Is disclosure made of the concentrations (including concentrations of contributions from a particular donor or fundraising event; concentrations of sources of labor, material, or services; or geographical concentrations) if, based on information known to management prior to issuance of the financial statements, the criteria for disclosure are met? (FASB ASC 275-10-50) _____
Statement of Financial Position
Does the statement of financial position or the notes to the financial statements of a not-for-profit organization include the following disclosures of FASB ASC 958-210:
Total assets, liabilities, and net assets? _____
Net assets by class? _____
Assets and liabilities aggregated into reasonably homogeneous groups? _____
Information about the various types of donor restrictions resulting in permanently restricted and temporarily restricted net assets (unless disclosed in the notes to financial statements)? _____
Liquidity of assets and liabilities either by sequencing assets and liabilities, or by presenting a classified statement? _____
If a classified statement of financial position is presented, totals presented for current assets and current liabilities? _____
Cash or other assets designated for long-term purposes or received with donor-imposed restrictions limiting their use to long-term purposes shown separately from similar assets available for current use? In addition, a separate line item should be presented on the statement called “Cash” or “Cash equivalents.” _____
Significant categories of receivables presented separately, such as accounts receivable, contributions, grants, advance payments on purchases, and amounts due from affiliated organizations, employees, and directors? (FASB ASC 310-10-45) _____
Do the notes to financial statements disclose the following information if it is not presented on the face of the statement:
The liquidity of assets and liabilities? _____
Information about the nature and amounts of different types of permanent or temporary net asset restrictions? _____
Contractual limitations on the use of particular assets? _____
Reclassifications or other changes that cause items for two or more periods to no longer be comparable should be disclosed. (FASB ASC 958-210) _____
Organizations presenting summarized prior year financial information must describe the summarized nature of the presentation in a note to the financial statements. _____
Has the not-for-profit organization disclosed the following:
The nature and amounts of the different types of permanent restrictions and temporary restrictions (either presented on the face of the statement of financial position or in the notes to the financial statements)? _____
Significant limits on unrestricted net assets, such as:
Limits in contracts with suppliers, creditors, or others? _____
Limits resulting from loan covenants? _____
Self-imposed limits, such as voluntary resolutions of the board of directors (optional)? _____
Investments other than Derivatives
Is the following information related to investments disclosed? (FASB ASC 958-320-50)
For the most recent statement of financial position presented:
The nature and carrying value for each investment or group of investments that represents a significant concentration of market risk. _____
For each statement of financial position presented:
The aggregate carrying value of each major investment type. _____
Mutual funds are not a “type” of investment for purposes of this disclosure. The disclosure must categorize mutual funds by their type (e.g., equity, bond, government, foreign, etc.).
The basis for determining the carrying amount for investments other than debt securities and equity securities with readily determinable fair values. _____
The methods and significant assumptions used to estimate fair values of investments other than financial instruments if those other investments are reported at fair value. _____
If the fair value of assets for all donor-restricted endowment funds is less than the amounts required by donors or by law, the aggregate amount of the deficiencies. _____
For each statement of activities presented: (FASB ASC 958-320-50)
Information about the components of investment return, including investment income, net gains and losses on investments reported at fair value, and net realized gains and losses on investments reported at other than fair value. _____
If investment return is separated into operating and nonoperating amounts, a reconciliation of investment return to amounts reported in the statement of activities. _____
A description of the policy used to determine the amount of investment return included in the operating amount and, if applicable, the reason for any changes to that policy. _____
The amount of investment expenses reported on the statement of activities as a reduction of investment income, gains, and losses. (FASB ASC 958-320-50) _____
The policy for reporting restricted gains and investment income whose restrictions are met in the same reporting period if the organization chooses to show them as unrestricted support. _____
For all investments in an unrealized loss position for which other-than-temporary impairments have not been recognized, has the following been disclosed?
As of each date for which a statement of financial position is presented, quantitative information, aggregated by category of investment—each category of investment that the investor discloses in accordance with Statements—in tabular form:
The aggregate amount of unrealized losses (that is, the amount by which cost or amortized cost exceeds fair value); and _____
The aggregate related fair value of investments with unrealized losses. _____
The disclosures in (1) and (2) above should be segregated by those investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or longer.
As of the date of the most recent statement of financial position, additional information, in narrative form, that provides sufficient information to allow financial statement users to understand the quantitative disclosures and the information that the investor considered (both positive and negative) in reaching the conclusion that the impairments are not other than temporary. This disclosure could include:
The nature of the investment(s); _____
The cause(s) of the impairment(s); _____
The number of investment positions that are in an unrealized loss position; _____
The severity and duration of the impairment(s); _____
Other evidence considered by the investor in reaching its conclusion that the investment is not other-than-temporarily impaired, including, for example, industry analyst reports, sector credit ratings, volatility of the security's fair value, and/or any other information that the investor considers relevant. _____
For cost method investments, has the following been disclosed as of each date for which a statement of financial position is presented (when applicable)?
The aggregate carrying amount of all cost method investments, _____
The aggregate carrying amount of cost method investments that the investor did not evaluate for impairment, and _____
The fact that the fair value of a cost method investment is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment, and
The investor determined, in accordance with FASB ASC 825-10-50, that it is not practicable to estimate the fair value of the investment, or _____
The investor is exempt from estimating fair value under FASB ASC 825-10-50. _____
Has the following been disclosed regarding an organization's endowment funds? (FASB ASC 958-205-50)
A description of the governing board's interpretation of the law(s) that underlies the organization's net asset classification of donor-restricted endowment funds. _____
A description of the organization's policy(ies) for the appropriation of endowment assets for expenditure (its endowment spending policy(ies)). _____
A description of the organization's endowment investment policies. The description shall include the organization's return objectives and risk parameters; how those objectives relate to the organization's endowment spending policy(ies); and the strategies employed for achieving those objectives. _____
The composition of the organization's endowment by net asset class at the end of the period, in total and by type of endowment fund, showing donor-restricted endowment funds separately from board-designated endowment funds. _____
A reconciliation of the beginning and ending balance of the organization's endowment, in total and by net asset class, including, at a minimum, the following line items (as applicable): investment return, separated into investment income (for example, interest, dividends, rents) and net appreciation or depreciation of investments; contributions; amounts appropriated for expenditure; reclassifications; and other changes. _____
An organization also should provide information about the net assets of its endowment funds, including:
The nature and types of permanent restrictions or temporary restrictions. _____
The aggregate amount of the deficiencies for all donor-restricted endowment funds for which the fair value of the assets at the reporting date is less than the level required by donor stipulations or law. _____
For organizations that have reported fair value measurements of investments in certain entities that calculated net asset value per share (or its equivalent) in accordance with FASB ASC 820-10-15-4 and 15-5, has the following been disclosed? (FASB ASC 820-10-50-6A)
The fair value (as determined by applying paragraph 820-10-35-59 through 35-62) of the investments in the major category, and a description of the significant investment strategies of the investee(s) in the major category. _____
For each major category of investment that includes investments that can never be redeemed with the investees, but the reporting entity receives distributions through the liquidation of the underlying assets of the investees, the reporting entity's estimate of the period of time over which the underlying assets are expected to be liquidated by the investees. _____
The amount of the reporting entity's unfunded commitments related to investments in the major category. _____
A general description of the terms and conditions upon which the investor may redeem investments in the major category (for example, quarterly redemption with 60 days' notice). _____
The circumstances in which an otherwise redeemable investment in the major category (or a portion thereof) might not be redeemable (for example, investments subject to a lockup or gate). Also, for those otherwise redeemable investments that are restricted from redemption as of the reporting entity's measurement date, the reporting entity shall disclose its estimate of when the restriction from redemption might lapse. If an estimate cannot be made, the reporting entity shall disclose that fact and how long the restriction has been in effect. _____
Any other significant restriction on the ability to sell investments in the major category at the measurement date. _____
If a reporting entity determines that it is probable that it will sell an investment(s) for an amount different from net asset value per share (or its equivalent) as described in paragraph 820-10-35-62, the reporting entity shall disclose the total fair value of all investments that meet the criteria in paragraph 820-10-35-62 and any remaining actions required to complete the sale. _____
If a group of investments would otherwise meet the criteria in paragraph 820-10-35-62 but the individual investments to be sold have not been identified (for example, if a reporting entity decides to sell 20 percent of its investments in private equity funds but the individual investments to be sold have not been identified), so the investments continue to qualify for the practical expedient in paragraph 820-10-35-59, the reporting entity shall disclose its plans to sell and any remaining actions required to complete the sale(s). _____
Inventories
Does the organization include the following disclosures about inventories in its financial statements? (FASB ASC 330-10-50)
Basis for stating inventories. _____
Method of determining costs (e.g., average cost). _____
Unusual losses resulting from lower of cost or market adjustments or losses on firm purchase commitments (if material, the losses should be disclosed separately from cost of goods sold in the statement of activities). _____
Long-Lived Assets and Depreciation
Do the financial statements include the following disclosures about long-lived assets and depreciation?
Description of the organization's capitalization policy, including basis of valuation. _____
Balances of major classes of depreciable assets for each period presented. _____
Depreciation expense for each period presented and accumulated depreciation as of the end of each period presented. _____
Description of the methods used to compute depreciation on each major class of depreciable assets and range of estimated lives of the assets. _____
Donor-restricted assets that are to be used to invest in property and equipment. _____
Property and equipment not recorded on the statement of financial position because its title is held by grantors, although the asset is used by the not-for-profit organization. Property and equipment acquired with restricted assets and whose title may revert to a third party should also be disclosed. _____
Property and equipment pledged as collateral or subject to a lien. _____
Donor-imposed or legal restrictions on the use of property and equipment or the proceeds from the disposition of property and equipment should be described in the footnotes. _____
Amounts capitalized for works of art, historical treasures, and similar items that do not meet the definition of a collection. _____
If an impairment loss is recognized in the statement of activities, are the following disclosures included in the notes to the financial statements? (FASB ASC 360-10-50)
Description of the impaired asset or asset group and the situation surrounding the impairment. _____
Amount of impairment loss and the methods used to determine fair value. _____
When more than one impairment loss is not reported separately or parenthetically, the caption where the losses are aggregated. _____
The business segment affected, if applicable. _____
Are disclosures to be made in the case of assets to be disposed of provided as follows? (FASB ASC 410-20-50)
A description of the facts and circumstances leading to the expected disposal, the expected manner and timing of that disposal, and, if not separately presented on the face of the statement, the carrying amount(s) of the major classes of assets and liabilities included as part of a disposal group. _____
The gain or loss recognized and if not separately presented on the face of the income statement, the caption in the statement of activities that includes that gain or loss. _____
If applicable, amounts of revenue and pretax profit or loss reported in discontinued operations. _____
If applicable, the segment in which the long-lived asset (disposal group) is reported. _____
Is the following information disclosed about asset retirement obligations? (FASB ASC 410-20-50)
A general description of the asset retirement obligations and the associated long-lived assets. _____
The fair value of assets that are legally restricted for purposes of settling asset retirement obligations. _____
A reconciliation of the beginning and ending aggregate carrying amount of asset retirement obligations showing separately the changes attributable to (1) liabilities incurred in the current period, (2) liabilities settled in the current period, (3) accretion expense, and (4) revisions in estimated cash flows, whenever there is a significant change in one or more of those four components during the reporting period. _____
If the fair value of an asset retirement obligation cannot be reasonably estimated, that fact and the reasons therefor shall be disclosed. _____
Intangible Assets (FASB ASC 350-30-50)
Are the following disclosures about intangible assets provided?
The period and method of amortization. _____
The following information should be disclosed for an impaired intangible asset:
A description of the impaired intangible asset and the circumstances surrounding its impairment; _____
The amount of the impairment loss reported in the statement of activities and the method for determining fair value. _____
For intangible assets acquired either individually or with a group of assets, the following information shall be disclosed in the notes to the financial statement in the period of acquisition:
For intangible assets subject to amortization
The total amount assigned and the amount assigned to any major intangible asset class; _____
The amount of any significant residual value, in total and by major intangible asset class; _____
The weighted-average amortization period, in total and by major intangible asset class. _____
For intangible assets not subject to amortization, the total amount assigned and the amount assigned to any major intangible asset class. _____
The amount of research and development assets acquired and written off in the period and the line item in the income statement in which the amounts written off are aggregated. _____
The following information shall be disclosed in the financial statement or the notes to the financial statements for each period for which a statement of financial position is presented:
For intangible assets subject to amortization
The gross carrying amount and accumulated amortization, in total and by major intangible asset class; _____
The aggregate amortization expense for the period; _____
The estimated aggregate amortization expense for each of the five succeeding fiscal years. _____
For intangible assets not subject to amortization, the total carrying amount and the carrying amount for each major intangible asset class. _____
The changes in the carrying amount of goodwill during the period including
The aggregate amount of goodwill acquired; _____
The aggregate amount of impairment losses recognized; _____
The amount of goodwill included in the gain or loss on disposal of all or a portion of a reporting unit. _____
For each impairment loss recognized related to an intangible asset, the following information shall be disclosed in the notes to the financial statements that include the period in which the impairment loss is recognized:
A description of the impaired intangible asset and the facts and circumstances leading to impairment. _____
The amount of the impairment loss and the method for determining fair value. _____
The caption in the income statement or the statement of activities in which the impairment loss is aggregated. _____
If applicable, the segment in which the impaired intangible asset is reported. _____
For each goodwill impairment loss recognized, the following information shall be disclosed in the notes to the financial statements that include the period in which the impairment loss is recognized:
A description of the facts and circumstances leading to impairment. _____
The amount of the impairment loss and the method of determining the fair value of the associated reporting unit (whether based on quoted market prices, prices of comparable businesses, a present value or other valuation technique, or a combination thereof). _____
If a recognized impairment loss is an estimate that has not yet been finalized (refer to paragraph 22), that fact and the reasons therefor and, in subsequent periods, the nature and amount of any significant adjustments made to the initial estimate of the impairment loss. _____
Collections
Is the not-for-profit organization's accounting policy for recognizing contributions of collection items described? _____
Are the additional disclosures that are required when collections are not capitalized or are capitalized prospectively after the adoption of FASB ASC 958-360-50 provided? The following additional disclosures should be provided: (FASB ASC 958-360-50)
Description of the collections, including their relative significance to the organization, and the organization's accounting and stewardship policies for collections. _____
If collection items not capitalized have become no longer accessible during the period
Description of the items given away, damaged, destroyed, lost, or otherwise deaccessed during the period, or _____
The fair value of such items. _____
Pledges and Other Receivables
Are accounts and notes receivable due from officers, employees, and affiliated organizations shown separately with appropriate disclosures? (FASB ASC 310-10-45-13) _____
If a note is noninterest-bearing or has an inappropriate stated interest rate:
Is the discount or premium presented as a deduction from or addition to the face amount of the note? _____
Does the disclosure include the effective interest rate and face amount of the note? _____
Is amortization of discount or premium reported as interest in the statement of activity? (FASB ASC 835-30-45) _____
Are valuation allowances for receivables shown as a deduction from the related receivable? (FASB ASC 310-10) _____
Do organizations that receive unconditional promises to give disclose the following:
The amounts of promises receivable in less than one year, in one to five years, and in more than five years? _____
The face amount of contributions promised to the organization? _____
The amount of any allowance for uncollectible promises receivable? _____
Unamortized discount? _____
Amounts pledged as collateral or otherwise limited as to use? (FASB ASC 958-310-50) _____
Do organizations that receive conditional promises to give disclose the following:
The total of the amounts promised? _____
A description and amount for each group of promises having similar characteristics (such as promises conditioned on establishing new programs, completing a new building, and raising matching gifts by a specified date)? (FASB ASC 958-310-50) _____
If receivables are sold with recourse:
Is the amount of the recourse obligation computed reported as a liability? Or _____
If it is not practicable to estimate the fair value of the recourse obligation incurred, is a description of the recourse agreement and the reasons why it is not practicable to estimate the fair value of the obligation disclosed? _____
If an impairment of a loan has been recognized, have the following disclosures been made, where applicable:
The total recorded investment in the impaired loans, the amount of impaired loans for which there is a related allowance for credit losses and the amount of that allowance, and the amount of impaired loans for which there is no related allowance for credit losses? _____
The policy for recognizing interest income on impaired loans? _____
The average recorded investment in impaired loans, the related amount of interest income recognized for the time that the loan was impaired within the period, and, if practicable, the amount of interest income recognized using a cash basis method of accounting during the time that the loan was impaired within the period? (FASB ASC 310-10-50) _____
For contracts with customers for which the entity has implemented the requirements of ASU 2014-09, the entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about:
Contracts with customers—including revenue and impairments recognized, disaggregation of revenue, and information about contract balances and performance obligations (including the transaction price allocated to the remaining performance obligations). _____
Significant judgments and changes in judgments—determining the timing of satisfaction of performance obligations (over time or at a point in time), and determining the transaction price and amounts allocated to performance obligations. _____
Assets recognized from the costs to obtain or fulfill a contract. _____
Debt-Related Disclosures
Is there disclosure of interest rates, maturities, and other terms and conditions, including assets pledged as collateral, of loan agreements, bond indentures, and any special borrowing agreements? _____
If a note is noninterest-bearing or does not have an inappropriate stated interest rate, are the following disclosures provided:
The discount or premium presented as a deduction from or addition to the face amount of the note? _____
The effective interest rate and face amount of the note? _____
If a short-term obligation is classified as a long-term borrowing, do disclosures include:
A general description of the financing agreement? _____
Terms of any new obligation incurred or expected to be incurred, as a result of the refinancing? (FASB ASC 470-10) _____
If debt was considered to be extinguished by in-substance defeasance prior to the effective date of SFAS 125, is a general description of the transaction and the amount of debt that is considered extinguished at the end of the period disclosed so long if the debt remains outstanding? (FASB ASC 860-30-50) _____
If assets are set aside after December 31, 1996, solely for satisfying scheduled payments on a specific obligation, is a description of the nature of the contractual restrictions placed on those assets disclosed? (FASB ASC 860-30-50) _____
If a troubled debt restructuring occurred during the period, have the following disclosures been made:
A description of the principal changes in terms, the major features of settlement, or both? _____
The aggregate gain on restructuring of payables? _____
The aggregate gain or loss on assets transferred to a creditor to settle a debt? (FASB ASC 470-60-50) _____
For periods after a troubled debt restructuring, have the following disclosures been made:
The extent to which amounts contingently payable are included in the liability for the restructured payables? _____
Total amounts contingently payable and the conditions under which those amounts would become payable or be forgiven? (This disclosure is required if it is reasonably possible that a liability for contingent payments will be incurred.) _____
For periods in which an exit or disposal activity is initiated and any subsequent period until the activity is completed, the following disclosures should be made: (FASB ASC 420-10-50)
A description of the exit or disposal activity, including the facts and circumstances leading to the expected activity and the expected completion date. _____
For each major type of cost associated with the activity (for example, one-time termination benefits, contract termination costs, and other associated costs):
The total amount expected to be incurred in connection with the activity, the amount incurred in the period, and the cumulative amount incurred to date; _____
A reconciliation of the beginning and ending liability balances showing separately the changes during the period attributable to costs incurred and charged to expense, costs paid or otherwise settled, and any adjustments to the liability with an explanation of the reason(s) therefor. _____
The line item(s) in the statement of activities in which the costs in (b) above are aggregated. _____
For each reportable segment, the total amount of costs expected to be incurred in connection with the activity, the amount incurred in the period, and the cumulative amount incurred to date, net of any adjustments to the liability with an explanation of the reason(s) therefor. _____
If a liability for a cost associated with the activity is not recognized because fair value cannot be reasonably estimated, that fact and the reasons therefor. _____
Statement of Activities
Are the following disclosures made in the statement of activities?
The amount of unrestricted revenue by major category. _____
The amount of unrestricted support by major source. _____
The amount of current restricted revenue and support by major source. _____
The amount of gifts and other income restricted by nonexpendable purposes. _____
The change in net assets by class and in total. _____
Is the following information disclosed in the financial statements or related notes?
The amount of interest cost incurred and charged to expense during the period. _____
The amount of interest cost capitalized during the period, if any. _____
The amount of advertising costs for the period. _____
Contributions
Has the organization disclosed the following in its notes to the financial statements?
The accounting policy that the organization follows regarding implied time restrictions on the use of contributed long-lived assets (and cash contributed for purchases of long-lived assets) when donors do not place stipulations about how long the assets must be used. (FASB ASC 958-360-50) _____
The accounting policy that the organization follows regarding classification of donor-restricted contributions as unrestricted if the restrictions are met in the same reporting period in which the contributions are received. (FASB ASC 958-360-50) _____
For not-for-profit organizations that are the recipients of unconditional promises to give:
The amounts of promises receivable in less than one year, in one to five years, and in more than five years; _____
The amount of the allowance for uncollectible promises receivable. (FASB ASC 958-360-50) _____
Not-for-profit organizations that are the recipients of conditional promises to give should disclose:
The total of the amounts promised. _____
A description and amount of each group of promises having similar characteristics, such as amounts of promises conditioned on establishing new programs, completing a new building, and raising matching gifts by a specified date. (FASB ASC 310-50) _____
Has the following information about contributed services been disclosed? (FASB ASC 958-605-50)
A description of the program or activities for which contributed services were used. _____
A description of the nature and extent of contributed services received during the period. _____
The amount recognized as revenues during the period. _____
Not-for-profit organizations are encouraged to disclose the fair value of services received but not recognized as revenues, if it is practicable.
Have the following financial statement presentations for split-interest agreements been made? (NFP Audit Guide, paragraph 6.15)
Assets and liabilities that result from split-interest agreements disclosed separately from other assets and liabilities in the statement of financial position or in the related notes. _____
Contribution revenue and changes in the value of split-interest agreements recognized under such agreements disclosed as separate line items in the statement of activities or in the related notes. _____
Are the following disclosed in the notes to the financial statements?
General terms of current split-interest agreements. _____
The basis used by the organization for recognized assets. _____
Actuarial assumptions used in calculating present values. _____
If the not-for-profit organization transfers assets to a recipient organization and specifies itself or its affiliate as the beneficiary, has the following been disclosed: (FASB ASC 958-605-50)
The identity of the recipient organization to which the transfer was made? _____
Whether variance power was granted to the recipient organization and, if so, a description of the terms of the variance power? _____
The terms under which amounts will be distributed to the resource provider or its affiliate? _____
The aggregate amount recognized in the statement of financial position for those transfers and whether the amount is recorded as an interest in the net assets of the recipient organization or as another asset? _____
Functional Reporting
Has the not-for-profit organization disclosed the following information related to functional reporting? (FASB ASC 758-720-45)
A description of the nature of the organization's activities, including a description of each of its major programs, either on the statement of activities or in the notes to financial statements. _____
Expenses reported by functional classifications either on the face of the statement of activities or in the notes to financial statements. (FASB ASC 958-720-45) _____
If the components of total program expenses are not evident from the captions used on the face of the statement of activities, total program expenses and information about why the amount disclosed does not agree with that reflected on the statement of activities. _____
Payments to affiliated organizations that cannot be allocated to functional expense classifications reported as a separate support service line item on the statement of activities captioned “Unallocated Payments to Affiliated Organizations”. _____
Voluntary health and welfare organizations must provide a statement of functional expenses presented as a basic financial statement showing the nature of the expenses and costs incurred in each functional category, and information in enough detail for a reader to obtain a general understanding of the organization. (FASB ASC 958-720-45) _____
Has the not-for-profit organization disclosed the following related to fundraising?
Total fundraising expenses. _____
If joint costs of informational materials and activities that include fundraising appeals are incurred, has disclosure been made of the type of activities for which joint costs have been allocated, that such costs have been allocated, the total amount allocated during the period, and the portion allocated to each functional expense category? _____
Cash Flows
Not-for-profit organizations are encouraged to use the “direct” method of presentation.
Have the following disclosures been made related to the statement of cash flows? (FASB ASC 230-10-45)
The accounting policy for determining which items are treated as cash and cash equivalents should be disclosed and should exclude cash equivalents purchased with contributions restricted to long-term investment. Descriptive terms such as cash or cash equivalents should be used rather than terms such as funds. _____
The net effect of cash flows and cash equivalents during the period should be shown in a manner that would enable the financial statement reader to reconcile beginning and ending cash and cash. _____
Cash receipts and cash payments must be classified as operating, investing, and financing activities. Cash inflows and outflows from investing and financing activities should be reported separately. _____
Investing and financing cash flows should be shown gross, not net. _____
The total amount of cash and cash equivalents at the beginning and end of the period shown in the statement of cash flows should be the same (or easily reconcilable) as similarly titled line items or subtotals in the statement of financial position. _____
A reconciliation of the change in net assets and net cash flows from operating activities that reports all major classes of reconciling items separately, including, at a minimum, changes during the period in receivables and payables pertaining to operating activities and in inventory, should be presented. _____
Items reconciling the change in net assets to net cash flows from operating activities should include separately all major classes of operating items, including, at a minimum, changes in receivables and payables related to operating activities and changes in inventory. A separate reconciliation may be presented either in the statement itself or in a separate schedule when the indirect method is used. _____
The following classes of operating cash receipts and payments should be shown separately when using the direct method:
Cash collected from customers, service recipients, grants, and contributions. They should not include cash collected from donors for donor-restricted for long-term purposes; _____
Interest and dividends received that are not donor-restricted for long-term purposes; _____
Cash paid to employees, suppliers, and other contractors, vendors, or grantees for programmatic purposes; _____
Other operating cash receipts and cash payments; _____
Interest and income taxes (where applicable) paid. _____
Noncash investing and financing transactions should be disclosed either in narrative form or summarized in a schedule. (FASB ASC 230-10-50) _____
If the indirect method of reporting cash flows from operating activities is used, the amounts of interest paid (net of any amounts of interest that have been capitalized) and unrelated business income taxes or excise taxes (where applicable) paid during the period should be disclosed. (FASB ASC 230-10-45) _____
Financial Instruments
Do disclosures of all significant concentrations of credit risk arising from all financial instruments, whether from an individual counterparty or group of counterparties (except for certain insurance and investment contracts, purchase and pension obligations), include:
Information about the (shared) activity, region, or economic characteristic that identifies the concentration? _____
The maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the organization? _____
The organization's policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the organization's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments? _____
The organization's policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the organization's maximum amount of loss due to credit risk? _____
SFAS 126 made disclosures about the fair value of financial instruments required by FASB ASC 825-10-50 optional for an entity that meets all of the following criteria:
The entity is a nonpublic company.
The entity's total assets are less than $100 million on the date of the financial statements.
The organization has no instrument that, in whole or in part, is accounted for as a derivative instrument under FASB ASC 815 during the reporting period.
Entities meeting this exemption are not required to disclose items 2 and 3.
Is the fair value of financial instrument for which it is practicable to estimate that value disclosed, together with the related carrying amount, in a form that makes it clear whether the fair value and carrying amount represent assets or liabilities and how the carrying amount relates to what is reported in the statement of financial position? (FASB ASC 825-10-50) _____
Has the entity disclosed the methods and significant assumptions used to estimate the fair value of financial instruments? _____
Derivatives (Chapter 29 includes the additional disclosure requirements for derivative instruments required by FASB ASC 815.)
Are derivative instruments that are within the scope of SFAS 133 accounted for as assets or liabilities in the statement of financial position and measured at their fair values? (FASB ASC 310-10-15; 815-10) _____
Are gains and losses included in the change in net assets for:
Derivative instruments that are not designated as a hedging instrument, and derivative instruments that are designated as cash flow hedges? (FASB ASC 815-25) _____
Derivative instruments designated and qualifying as a fair value hedge, along with the offsetting loss or gain on the hedged item and the effects of hedge ineffectiveness? (FASB ASC 815-25) _____
Are gains and losses on derivative instruments or nonderivative financial instruments that are designated and qualifying as hedges of a foreign currency exposure of a net investment in a foreign operation accounted for in the same manner as a translation adjustment? (FASB ASC 815-25) _____
Does the organization disclose the following information about derivative instruments it holds or issues: (FASB ASC 815-10-50)
Its objectives for holding or issuing those instruments? _____
The context necessary to understand those objectives? _____
Its strategies for achieving those objectives? _____
Do the disclosures described in item 7 distinguish between instruments designated as (a) fair value hedging instruments, (b) cash flow hedging instruments, (c) hedges of foreign currency exposure of net investments in foreign operations, and (d) all other derivatives and describe: (FASB ASC 815-10-50)
The organization's risk management policy for each of the types of hedges? _____
A description of the items or transactions for which risks are hedged? _____
For derivative instruments not designated as hedging instruments, does the organization describe the purpose of holding or issuing the derivatives? (FASB ASC 815-10-50) _____
Did the organization consider providing additional qualitative disclosures about its overall risk management profile? (FASB ASC 815-10-50) _____
Is the following information about fair value hedges disclosed: (FASB ASC 815-10-45)
The net gain or loss recognized in the change in net assets for the sum of (1) the amount of the hedge's ineffectiveness, and (2) the component of the derivative instrument's gain or loss, if any, excluded from the assessment of hedge effectiveness? _____
A description of where the net gain or loss is reported in the statement of activities? _____
The amount of net gain or loss recognized in earnings when a hedged firm commitment no longer qualifies as a fair value hedge? _____
Is the following information about hedges of the net investment in a foreign operation disclosed:
The net amount of gains or losses included in the cumulative translation adjustment during the reporting period? _____
For financial instruments and derivative financial instruments that are offset or subject to a master netting arrangement, are the following disclosed? (ASU 2011-11; FASB ASC 210-20-50)
An entity shall disclose at the end of the reporting period the following quantitative information separately for assets and liabilities that are within the scope of paragraph 210-20-50-1:
The gross amounts of those recognized assets and those recognized liabilities. _____
The amounts offset in accordance with the guidance in Sections 210-20-45 and 815-10-45 to determine the net amounts presented in the statement of financial position. _____
The net amounts presented in the statement of financial position. _____
The amounts subject to an enforceable master netting arrangement or similar agreement not otherwise included in (2):
The amounts related to recognized financial instruments and other derivative instruments that either:
Management makes an accounting policy election not to offset; or _____
Do not meet some or all of the guidance in either Section 210-20-45 or Section 815-10-45. _____
The amounts related to financial collateral (including cash collateral). _____
The net amount after deducting the amounts in (d) from the amounts in (c). _____
The information required by the preceding paragraph should be presented in a tabular format, separately for assets and liabilities, unless another format is more appropriate. The total amount disclosed in accordance with paragraph 210-20-50-3(d) for an instrument should not exceed the amount disclosed in accordance with paragraph 210-20-50-3(c) for that instrument. _____
An entity shall provide a description of the rights of setoff associated with an entity's recognized assets and recognized liabilities subject to an enforceable master netting arrangement or similar agreement disclosed in accordance with paragraph 210-20-50-3(d), including the nature of those rights. _____
If the information required in this section is disclosed in more than a single note to the financial statements, an entity shall cross-reference between those notes. _____
Income Taxes (including excise tax on net investment income of private foundations, and compliance with state charitable solicitation laws)
Is information about the organization's tax status disclosed, such as the Internal Revenue Code section under which it is exempt?
If the organization is exempt under Section 501(c)(3), is its private foundation status disclosed? _____
Disclose the amount of income tax expense and the nature of the activities giving rise to the tax. _____
If there are timing differences between “book” and taxable income (e.g., unrealized gains/losses on investments held by a private foundation), have the disclosures regarding deferred taxes required by FASB ASC 740-10 been made? _____
Has disclosure been made regarding any contingencies related to income tax status, for example, possible monetary penalties or loss of exempt status resulting from the following:
Excessive unrelated business income? _____
Failure to file required reports (including state)? _____
Private inurement or benefit? _____
Excessive lobbying or political activities? _____
Private foundation
Self-dealing? _____
Failure to make minimum distributions? _____
Jeopardy investments or excess business holdings? _____
Prohibited expenditures? _____
Noncompliance with rules related to provision to donors of information relating to charitable deductions? _____
Noncompliance with rules regarding public availability of information returns? _____
Violation of state or local laws relating to charitable solicitations? _____
Activities inconsistent with its exempt status? _____
Fair Value Measurements
For assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to initial recognition, has the following information for each interim and annual period (except as otherwise specified) separately for each class of assets and liabilities been disclosed? (FASB ASC 820-10-50)
The fair value measurements at the reporting date. _____
The level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). _____
For fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following:1
Total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); _____
Purchases, sales, issuances, and settlements (gross); _____
Transfers in and/or out of Level 3 (for example, transfers due to changes in the observability of significant inputs). _____
The amount of the total gains or losses for the period in subparagraph c.(1) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities). _____
Disclosures about inputs and valuation techniques. A reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements. These disclosures are required for fair value measurements that fall in either Level 2 or Level 3 and include a description of the valuation technique (or multiple valuation techniques) used, such as the market approach, income approach, or the cost approach, and the inputs used in determining the fair values of each class of assets or liabilities. If there has been a change in the valuation technique(s) (for example, changing from a market approach to an income approach or the use of an additional valuation technique), the reporting entity shall disclose that change and the reason for making it. _____
For assets and liabilities that are measured at fair value on a nonrecurring basis in periods subsequent to initial recognition (for example, impaired assets), has the following information for each interim and annual period (except as otherwise specified) separately for each class of assets and liabilities been disclosed? (FASB ASC 820-10-50)
The fair value measurements recorded during the period and the reasons for the measurements. _____
The level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). _____
For fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs. _____
In annual periods only, the valuation techniques(s) used to measure fair value and a discussion of changes, if any, in the valuation techniques(s) used to measure similar assets and/or liabilities in prior periods. _____
Disclosures about inputs and valuation techniques. A reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements. These disclosures are required for fair value measurements that fall in either Level 2 or Level 3 and include a description of the valuation technique (or multiple valuation techniques) used, such as the market approach, income approach, or the cost approach, and the inputs used in determining the fair values of each class of assets or liabilities. If there has been a change in the valuation technique(s) (for example, changing from a market approach to an income approach or the use of an additional valuation technique), the reporting entity shall disclose that change and the reason for making it. _____
The quantitative disclosures required by FASB ASC 820-10-50 should be presented using a tabular format.
The reporting entity is encouraged, but not required, to combine the fair value information disclosed under this Statement with the fair value information disclosed under other accounting pronouncements in the periods in which those disclosures are required, if practicable. The reporting entity also is encouraged, but not required, to disclose information about other similar measurements, if practicable. (FASB ASC 820-10-50)
The following disclosures are required by FASB ASC 820-10-50 for items measured at fair value under the option in this Statement.
As of each date for which a statement of financial position is presented, has the following been disclosed?
Management's reasons for electing a fair value option for each eligible item or group of similar eligible items. _____
If the fair value option is elected for some but not all eligible items within a group of similar eligible items:
A description of those similar items and the reasons for partial election; _____
Information to enable users to understand how the group of similar items relates to individual line items on the statement of financial position. _____
For each line item in the statement of financial position that includes an item or items for which the fair value option has been elected:
Information to enable users to understand how each line item in the statement of financial position relates to major categories of assets and liabilities presented; _____
The aggregate carrying amount of items included in each line item in the statement of financial position that are not eligible for the fair value option, if any. _____
The difference between the aggregate fair value and the aggregate unpaid principal balance of:
Loans and long-term receivables (FASB ASC 320-10-15) that have contractual principal amounts and for which the fair value option has been elected. _____
Long-term debt instruments that have contractual principal amounts and for which the fair value option has been elected. _____
For loans held as assets for which the fair value option has been elected:
The aggregate fair value of loans that are 90 days or more past due; _____
If the entity's policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status; _____
The difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both. _____
For investments that would have been accounted for under the equity method if the entity had not chosen to apply the fair value option, the information required by FASB ASC 323-1, The Equity Method of Accounting for Investments in Common Stock. _____
For each period for which an income statement is presented, has the following about items for which the fair value option has been elected been disclosed? (FASB ASC 825-10-50)
For each line item in the statement of financial position, the amounts of gains and losses from fair value changes included in earnings during the period and in which line in the income statement those gains and losses are reported. (An entity is not precluded from meeting this requirement by disclosing amounts of gains and losses that include amounts of gains and losses for other items measured at fair value, such as items required to be measured at fair value.) _____
A description of how interest and dividends are measured and where they are reported in the income statement. _____
For loans and other receivables held as assets:
The estimated amount of gains or losses included in earnings during the period attributable to changes in instrument-specific credit risk. _____
How the gains or losses attributable to changes in instrument-specific credit risk were determined. _____
For liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk:
The estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; _____
Qualitative information about the reasons for those changes; _____
How the gains and losses attributable to changes in instrument-specific credit risk were determined. _____
The disclosure requirements in FASB ASC 825-10-50 do not eliminate disclosure requirements included in other GAAP pronouncements, including other disclosure requirements relating to fair value measurement.
In annual periods only, have the methods and significant assumptions used to estimate the fair value of items for which the fair value option has been elected been disclosed? _____
If an entity elects the fair value option at the time one of the events in FASB ASC 825-10-25 occurs, has the following been disclosed in financial statements for the period of the election?
Qualitative information about the nature of the event. _____
Quantitative information by line item in the statement of financial position indicating which line items in the income statement include the effect on earnings of initially electing the fair value option for an item. _____