Week 10 assignment 410

School: Kennesaw State University - Course: ACC 410 - Subject: Accounting

WEEK 10 - ASSIGNMENT: FINANCIAL REPORTING REVIEW OF A NFP ORGANIZATION2 Analysis of The National Audubon Society The NFP organization that I choose for my assignment is the National Audubon Society. The National Audubon Society is a non-profit organization committed to the protection of birds and their habitats in the United States. Audubon is one of the world's oldest conservation groups, having been founded in 1905 in the United States. " There are wholly autonomous Audubon Societies in the United States, such as the Massachusetts Audubon Society and the Connecticut Audubon Society, which were formed some years earlier" (National Society of Audubon, 2021). The National Audubon works to protect birds and the habitats they want in the Americas now and future via study, advocacy, educating, and on-the-ground management. Audubon centers and sanctuaries serve as hubs for preservation research, exploration, and interaction, allowing thousands of citizens to learn about and safeguard nature. This group makes financial reports and declarations available to the public in order to be as transparent as feasible. This connection is important to me since greediness is eroding the natural routines of these species. Analysis of National Audubon Society to determine if the statements conform to the Financial Accounting Standards Board (FASB) guidance from Not-for-Profits. The Financial Accounting Standards Board's Statement No. 117 is followed by the National Audubon Society. External users may easily understand the information provided by the company (IRS, 2022). The institution's financial statements, statements of operations, and statements of cash flows are all included in its report . The National Audubon Society's financial statements are produced in accordance with generally accepted accounting standards in theUnited States. The National Audubon Society follows FASB ASC 958-205-45 when it comes to reporting net assets and liabilities (AICPA, 2019). When using the first fund type, unrestricted and restricted net assets are comparable, if not identical, to those of any other nonprofit organization (National Society of Audubon, 2019). Since there are no donor limits on unconstrained net assets, the Board of Directors would have total authority over how they are used. These assets may be subject to legal restrictions if they are provided by other parties. The National Audubon Society makes use of restricted net assets that are subject to charitable constraints on a regular basis. These types of assets are often classed as cash gifts and other analogous contributions to the firm (IRS, 2022). Unrestricted assets are those that have no restrictions imposed by the source. Temporarily restricted net assets comprise earnings on constantly constrained financial resources that have not been allowed for expenditure. Contributors have expressed that they want fixed net assets to be used for a certain purpose. The second fund is liquidity declarations in financial reports that are specifically classified as cash and cash equivalents. These resources clearly illustrate what the company can sell if it has to, which I think is a great liquidity risk management technique (National Society of Audubon, 2019). The third fund is for cost reporting (technical expenditures). Like with the liquidity disclosures, the National Society of Audubon prepares a separate statement that details out all expenditures for the business by functionality. The two key areas I would encourage stakeholders to concentrate on are liquidity disclosures and operational expenses (IRS, 2022). As a stakeholder, you want to know whether the company is equipped to cope with any unforeseen