SFAS 116 and 117

This report summarizes SFAS 116 which deals with contributions made and received, and SFAS 117 which deals with financial statement format. Compliance with the two standards is mandatory for years ending December 31, 1995 and going forward, but with an optional one year delay for organizations with annual expenditures under $1 million and total assets under $5 million. SFAS 116 and 117 affect all levels of operation of the non-profit organization, not just the accounting function. From development officers to legal counsel to IT support, for example, SFAS 116 and 117 reporting requirements can impact how those responsibilities are carried out (Fleming, n.d.).

Statement of Financial Accounting Standards (SFAS) No. 116 establishes standards for contributions received and contributions made. In general, the following guidelines apply:

Contributions received, as well as unconditional promises to give, are recognized as revenues in the period in which they are received...
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