The Form 990's approach to reporting financial statements initially seems easy as it follows the filer's books with only a modest amount of "990 instructions"-required changes. Unfortunately, those changes reflect multiple conventions the IRS uses to replace GAAP treatment that many filers otherwise would follow! Preparers need be able to recognize and apply the 990's non-recognition of both the donation of services or discounts on accessing others' properties and mark-to-market valuation of invested assets.
Public accounting tax and audit staff, and nonprofit organization's Treasurers, CFOs and finance/compliance staff
After attending this presentation you will be able to...
- Command the common “book versus 990” differences that are key to the revenue, expense, and changes in net assets reporting on Parts VIII-X
- Distinguish the variety of inputs from a filer's book financial statements that require adjustment to 990 conventions
- Appreciate the hierarchy of revenue reporting Part VIII applies
- Identify where additional information may be necessary in order to meet disclosure mandates for certain reconciling items enumerated on Part XI
- Recognize the 990's separate Schedules that may be required as a result of entries or conditions reported on Parts VIII - X
The major topics that will be covered in this class include:
- Statement of Revenue (Part VIII) key definitions: the six rules behind Line 1 (gifts, grants, contribution) and the definitions that drive Line 2 (program service revenue) including characterization of passive investment-type revenues as program-related investments (PRIs)
- Unique status issues that require inputting of revenues upon Part VIII's Lines 8-10 (the fundraising events or sales, gaming, and sales of inventory lines)
- Understanding the unrelated business income tax (UBIT) "self-audit" reporting applied via Part VIII's columns including the baseline definitions that are used to identify revenue streams as either exempt function income, sourced-to-UBI, or UBIT-excepted
- Statement of Functional Expenses (Part IX): understanding the natural classifications of costs employed upon the form, and exploration of the relevant definitions as well as common mistakes that result from ignorance of this part's instructions
- Balance sheet (Part X) issues overall including handling the reconciliation of P&L yearend assets in Part IX and noting form deficiencies in flagging the possible application of Schedule L
None, although helpful to have some knowledge of how the Form 990 is structured