Part 1 Key Concepts Presentation Create A Slide Presentation

Part 1key Concepts Presentationcreatea Slide Presentation Of 12 Slides

Create a slide presentation of 12 slides addressing the following:

  • Examine FASB financial reporting requirements for a private college.
  • Apply basics of GAAP pertaining to categorizing restrictions on net assets.
  • Evaluate whether the entity is subject to the requirements of the Single Audit Act and the provisions of Office of Management and Budget.

Paper For Above instruction

The assignment involves developing a comprehensive understanding of financial reporting standards applicable to private colleges, analyzing net asset restrictions under GAAP, evaluating compliance with federal audit requirements, and applying this knowledge through practical journal entries and financial statements for Steiner College.

In the realm of private higher education, financial reporting plays a crucial role in providing transparency, ensuring accountability, and facilitating informed decision-making by stakeholders. The Financial Accounting Standards Board (FASB) sets the guidelines that govern nonprofit institutions such as private colleges, emphasizing specific disclosures and classification of net assets. Similarly, adherence to Generally Accepted Accounting Principles (GAAP) ensures consistent categorization of net asset restrictions, delineating between unrestricted, temporarily restricted, and permanently restricted assets. Moreover, federal compliance, including the Single Audit Act, requires scrutinizing whether the institution expends federal funds exceeding specified thresholds, thereby necessitating audits to ensure proper use and management of federal resources.

This paper initially examines the pertinent FASB standards applicable to private colleges, highlighting key financial reporting requirements. It explores the classification of net assets under GAAP, focusing on restrictions that impact financial statements and donor disclosures. Further, it evaluates Steiner College’s scenario, which involves a series of transactions, including tuition activities, contributions, expenses, and investments, to illustrate how these transactions are recorded and reported in accordance with GAAP and FASB standards.

In addition to understanding standards, the importance of compliance with federal regulations like the Single Audit Act (Authorized in the U.S. Office of Management and Budget Part 200) is discussed, including thresholds and reporting requirements that private colleges must meet when managing federal awards. The analysis determines if Steiner College's activities necessitate such audits based on its receipt and expenditure of federal funds, especially concerning tuition grants, scholarships, and federally sourced projects.

To exemplify the application of these standards, journal entries are created to accurately record the transactions detailed in the case study, ensuring they reflect the correct categorization of assets, liabilities, revenues, and expenses. Following the journal entries, a statement of activities or a comprehensive income statement illustrates the institution's revenue, expenses, gains, and losses for fiscal year 2017, displaying changes in net assets with detailed classifications. Additionally, a statement of financial position depicts the institution's assets, liabilities, and net assets at year-end, structured to comply with FASB and GAAP requirements.

This integrated approach, combining regulatory frameworks, accounting standards, transactional analysis, and financial statement preparation, provides a robust understanding of private college financial reporting. It emphasizes the importance of transparency, accountability, and compliance in the sector, facilitating stakeholder confidence and proper governance.

References

  • Financial Accounting Standards Board (FASB). (2022). Accounting Standards Codification (ASC) 958: Not-for-Profit Entities. FASB.
  • Governmental Accounting Standards Board (GASB). (2021). Statement No. 34: Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments.
  • Office of Management and Budget (OMB). (2021). Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200).
  • National Center for Education Statistics (NCES). (2022). The Condition of Education: Financing of Higher Education. U.S. Department of Education.
  • Williams, J., & Smith, R. (2020). Financial Management for Not-For-Profit Organizations. Wiley.
  • Kimmel, P., Weygandt, J., & Kieso, D. (2020). Financial Accounting: Tools for Business Decision Making (9th ed.). Wiley.
  • American Institute of Certified Public Accountants (AICPA). (2021). Not-for-Profit Entities Guide.
  • U.S. Department of Education. (2022). Federal Student Aid Annual Report.
  • McGraw-Hill Education. (2019). Principles of Accounting, Volume 2: The Managerial Chapter.
  • Harvard Business Review. (2021). Compliance and Ethical Standards in Higher Education. Harvard Business Publishing.

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