Statements of Position



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This AICPA Audit and Accounting Guide has been prepared to assist nongovernmental not-for-profit organizations in preparing financial statements in conformity with generally accepted accounting principles (GAAP) and to assist independent auditors in auditing and reporting on those financial statements. This Guide applies to organizations that meet the definition of a not-for-profit organization included in appendix D of Financial Accounting Standards Board (FASB) Statement No. 117, Financial Statements of Not-for-Profit Organizations. Some organizations that have traditionally been considered to be not-for-profit organizations and that have been covered by American Institute of Certified Public Accountants (AICPA) Industry Audit Guides or Audit and Accounting Guides that are superseded by this Guide do not meet the definition of a not-for-profit organization in FASB Statement No. 117. Although FASB Statement No. 117 excludes those organizations from its scope, it nevertheless contains broad guidelines that would enable them to prepare meaningful financial statements. Accordingly, this Guide applies to certain organizations, referred to in this guide as not-for-profit organizations, though those organizations do not meet the definition of a not-for-profit organization in FASB Statement No. 117. This Guide incorporates certain provisions of FASB Statements No. 116, Accounting for Contributions Received and Contributions Made, and No. 117. Not all guidance that is included in those Statements, however, is incorporated, repeated, or summarized in this Guide. Accordingly, those Statements should be read in conjunction with this Guide. Like FASB Statements No. 116 and No. 117, this Guide is directed at not-for-profit organizations in general, and not at specific kinds of such organizations, such as voluntary health and welfare organizations or private colleges and universities. It is expected that various industry associations will publish guidance on applying both the FASB Statements and this Guide to specific kinds of organizations.2 This Guide supersedes the following AICPA Audit and Accounting Guides: 1. Industry Audit Guide Audits of Voluntary Health and Welfare Organizations; 2. Industry Audit Guide Audits of Colleges and Universities; 3. Audit and Accounting Guide Audits of Certain Nonprofit Organizations. lt also supersedes the following AICPA Statements of Position (SOPs): 1. SOP 74-8, Financial Accounting and Reporting by Colleges and Universities; 2. SOP 78-10, Accounting Principles and Reporting Practices for Certain Nonprofit Organizations.

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Nonprofit organizations -- United States -- Auditing


Accounting | Taxation


Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.

Proposed audit and accounting guide : Not-for-profit organizations ;Not-for-profit organizations; Exposure draft (American Institute of Certified Public Accountants), 1995, April 14



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