Functional expenses: A revised focus for not-for-profit auditors
Resources
Cart
searchSearch
search
burger
  • Home
Two women sitting at table discussing information
Resources

Functional expenses: A revised focus for not-for-profit auditors

Sep 20, 2022 · 3 min read

SECTION

EXCLUSIVE

FASB Accounting Standards Codification (ASC) Topic 958, Not-for-Profit Entities, requires all not-for-profit entities to present the relationship between functional expenses (such as major classes of program services and supporting activities) and natural expenses (such as salaries, rent, electricity, supplies, interest, and depreciation). For financial statement users, this analysis provides an in-depth look at how nonprofits spend toward their missions. For auditors and preparers, it necessitates consideration of the approach to the allocation and reporting of functional expenses.

With respect

Reserved for NFP Section members

Already an NFP Section member?

Log in with your AICPA account
 
Forgotten email
Forgotten password

Not an NFP Section member?

Discover the benefits of AICPA membership and Not-for-Profit Section member. To gain access to exclusive content, your first step is to join the AICPA.

Exclusively for

Mentioned in this article

Topics

Subtopics

Manage preferences

Related content