我们的auditor, BDO, 认为我们应该在当年expense them 因为suppliers' services have been rendered. 有路过的firm 的同学请吱一声,这是based on 哪个accounting principal. 需不需要考虑matching?跟camps 有关的收入和拨款都将在七月(下一个会计年度)收到。先谢谢了!
-joycezhao(comptable);
2013-9-10(#74665@41)
If "Camps" event is a revenue earning activity, capitalizing the supplies until the revenue is recognized, otherwise, expensing them when purchased.But perhaps your organization follows "cash basis/expenditure accounting" rather than "accrual basis/expense accounting". If that's the case, BDO's suggestion makes sense that the suppliers should be expensed in current year.
Try to trace how your organization record cash received.
The correct treatment should be accrual/expense accounting per CICA HB4400.02 and HB1000 (fully applies to NFPOs).
-toysrus(好奇猫);
2013-9-11{410}(#74668@41)
谢谢你的回复。不好意思,如果你有FA4 text book (electronic version), 可不可以麻烦你发我一份。email: zhflkw@gmail.com. 先谢谢了。
-joycezhao(comptable);
2013-9-11(#74683@41)
That's what I explained: Expense immediately or capitalize and expense later. It depends on what rule your organization follows. GAAP regulates it to be capitalized to match the revenue earning activity.如果你们公司用的是accrual basis+expense accounting, BDO的这个建议是错误的,应该放到第二年再记费用,除非这个camp不能generate revenue。如果你们公司一直是用cash basis+expenditure accounting,BDO的建议是正确的。
-toysrus(好奇猫);
2013-9-11{207}(#74684@41)
I think the concern here is about the camp supplies. Since the camping goods have been purchased, there is no prepaid account. Credit Cash, Debit supplies. does not impact any income statement. My personal opinion...
-rsam007(rsam007);
2013-9-16(#74818@41)
oh..can be many years can be soon. when it is used, the debit expense, credit supplies. If i am wrong, please correct it.
-rsam007(rsam007);
2013-9-17(#74871@41)
Update! BDO 现要求我们revise 除了机票外的所有其他expenses,比如snacks, T-shirts, shipping fees, etc 都要在当年expense. 不明白为什么?请教各位老法师。根据上面古风同学的解释,我也check 了每个camp的supporting funds. We don't collect fees from camp participants, but we do have government funds and company sponsorships for each camp. should I consider these funds and sponsorships as economic benefits? The funds we recevied before the yearend have been defered to the new fiscal year.
真心求助各位大牛!不甘心输得这样不明不白啊!先谢了!
-joycezhao(comptable);
2013-10-1{388}(#75789@41)
BDO 给出这么做的理由是什么?Ask them why?
-jinx99(FAPI);
2013-10-1(#75791@41)
For the contribution, it seems that they are restricted contribution. I think that is why it should be deferred.
-reenee(螃蟹);
2013-10-1(#75793@41)
That's why I got confused. The funds that contributed to the camps were defered, but costs related to the camps were expensed. What is the purpose doing this? It doesn't make sense to me. I need to be convinced.
-joycezhao(comptable);
2013-10-1(#75797@41)
Do not abuse the matching principle. LOL
-reenee(螃蟹);
2013-10-1(#75798@41)
I understand what you are saying. But in our case, matching contributions and expenses for each program can provide the board more useful information.So I really want to know if there is any accounting principle says we are not allowed to apply matching principle in this case. Thanks.
-joycezhao(comptable);
2013-10-1{135}(#75815@41)
The flight tickets are some service you paid, but not rendered.
-reenee(螃蟹);
2013-10-1(#75794@41)
We all focused on matching. But, according to your update, there is no matching at all. You do not collect money from the camp. And the restricted contribution is not contributed absolutely for buying those stuff. still just my point.
-reenee(螃蟹);
2013-10-1(#75795@41)
Funds from different companies are restricted on their designated camps, so we seperate the costs for each camp or program. What is why I emphasize on matching as I want to capture all the costs for a restricted fund in one fiscal year.On the other hand, I am not very clear about the purpose they ask us to expense the costs in current year. To better reflect the financial status for only $16,000 expenses?
不好意思,门外汉的想法,不要笑我。
-joycezhao(comptable);
2013-10-1{208}(#75809@41)
Just try to understand why, forget about challenging BDO. The allocation of costs to each camp is just for information or analysis, not for reporting. When preparing the financial report, you have to follow the rules. My thought.If the fund is restricted to buy a capital asset, when you buy it, you record it as contribution. Now, the fund is used for the camp, not buying the stuff. When you have the camp, you recognize the contribution.
-reenee(螃蟹);
2013-10-1{211}(#75811@41)
Please refer my rely above. I prefer the matching because we can provide more useful information to the board. They don't want to see expenses for a particlular program were allocated in two fiscal years.I didn't get what you are saying about the restricted funds. Based on agreements, these funds were given us for providing camps in some communities.
-joycezhao(comptable);
2013-10-1{149}(#75817@41)
Maybe I didn't make myself clear. These supplies (snacks and T-shirts are for students who participate the camps) are used for camps only.
-joycezhao(comptable);
2013-10-1(#75819@41)
Then, what do you want to do with these payments?
-reenee(螃蟹);
2013-10-1(#75821@41)
the link is enclosed in my first post today. Not aggressive. Just felt I already said enough.
-reenee(螃蟹);
2013-10-1(#75823@41)
Thank you for saying so much. Unfortunately I am too stupid to understand you. Anyway, thank you for your replies today.
-joycezhao(comptable);
2013-10-1(#75830@41)