X hits on this document

385 views

0 shares

0 downloads

0 comments

55 / 125

The requirement is irrevocable and is not self-imposed. To recognize the fiduciary responsibilities to the donors of Charity J that are assumed when Charity J’s assets and liabilities are acquired, Charity I would classify changes to its net assets as follows. [FAS 164, paragraph A130, sequence 231.1]

Increase in unrestricted net assets: Contribution received in the acquisition of Charity J

$ 375

Increase in temporarily restricted net assets: Contribution received in the acquisition of Charity J

$ 425

Increase in permanently restricted net assets: Contribution received in the acquisition of Charity J

$ 200

[FAS 164, paragraph A130, sequence 231.2]

  • >

    > Example 7: Illustration of an Acquisition in a Statement of Cash Flows

958-805-55-68 This Example illustrates application of the guidance in paragraphs 958-805-45-11 and 958-805-50-15. Entity X, an NFP, acquires Entity S from Entity S’s parent. As part of the acquisition, Entity S’s parent requires that Entity X transfer consideration of $300 to a third-party community foundation. The fair values of Entity S’s assets and liabilities at the acquisition date are as follows. [FAS 164, paragraph A131, sequence 232.1]

Cash Contributions receivable Property, plant, and equipment Long-term note payable

Net assets acquired

$

$

25 155 900 (375) 705

[FAS164, paragraph A131, sequence 232.2]

958-805-55-69 Entity X reports the acquisition as a single line in the investing activities section of the statement of cash flows, as follows: [FAS164, paragraph A132, sequence 233.1]

Payment for acquisition of Entity S, net of cash acquired [FAS164, paragraph A132, sequence 233.2]

$

(275)

49

Document info
Document views385
Page views385
Page last viewedFri Dec 09 01:54:17 UTC 2016
Pages125
Paragraphs3446
Words39606

Comments