Disclosure Examples
An NFP paid a law firm for legal services. One of the partners of the firm is the NFP's president and member of the governing board.
What is a disclosure of a related party?
An NFP has determined that the company they purchase supplies from is owned by a governing board member of the NFP.
Disclose. Related party transactions should be disclosed to meet an NFP's stewardship responsibilities.
A ratio of fundraising expenses to amounts raised.
What is a fundraising ratio?
An event that occurs after an NFP's reporting period, but before the NFP has issued their financial statements.
What is a subsequent event?
An NFP has artwork that was damaged in a flood.
What is the disclosure for deaccessed artwork?
Disclose. If the ratio is disclosed, then it is also necessary to show how the ratio was determined.
A work of art, historical treasure, or other similar asset that meets certain criteria.
What is a collection?
An entity obtaining control over another entity.
What is an acquisition?
An NFP is planning on building a playground as part of their afterschool program for elementary students. An architect has offered to donate their services to help design the playground.
What is a contributed service disclosure?
An NFP was able to practically determine the fair value of the contributed services received.
Disclose. NFPs are encouraged to disclose the fair value of contributed services.
An entity ceding control to another entity.
What is a merger?
Information on the availability of the NFP's financial assets
What is quantitative information?
NFP A and NFP B agree to a reorganization merger agreement. All assets and liabilities of NFP A were transferred to NFP B. The excess of assets over liabilities has been recorded as contribution revenue.
What is a disclosure of a merger?
An NFP has a few liabilities that will mature before their year end.
Disclose. An NFP should disclose relevant information about the liquidity and maturity of their assets and liabilities.
Information that an NFP uses to manage their liquid resources to meet cash needs.
What is qualitative information?
Artwork or other similar items that have been removed from a museum collection typically from a sale, transfer to another museum, or destruction.
What are deaccessed collections?
An NFP discloses a list of assets that are not available for use on general expenditures. It is noted that instead they are reserved for use on capital expenditures and an operating reserve.
What is a liquidity disclosure?
A museum evaluated its 2022 financials for subsequent events. The museum is not aware of any subsequent events.
Not to disclose.
Services provided by accountants, architects, carpenters, doctors, electricians, lawyers, nurses, plumbers, teachers, and other professionals and craftsmen.
What is a specialized skill?
Financial statements that are complete, comply with GAAP, and have been approved.
What are statements that are considered available to be issued?