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Financial statement presentation
BYLON AYESIGYERUHANGA replied 4 months, 1 week ago
3 replies
3 members
  • 5 June 2020 at 8:49 am

    Hi IFR4NPO Community!
    What are your thoughts on financial statement presentation?
    Do you prefer your NPO balance sheet vertical (Top: Assets – Liabilities = Bottom: Funds) or horizontal (Left: Assets = Right: Liabilities + Funds)?
    How do you present movements (income and expenditure) on in different funds, and the various closing fund balances?

    You can see more information about the project’s current thinking on this topic here.
    We look forward to hearing your views.

    Sam Musoke,

    Project Director IFR4NPO at Humentum

  • 19 August 2020 at 3:07 pm

    Prefer assets and funds analysis as much clearer for readers and trustees to understand. I think there needs to be a rethink of the funds though and the level of detail and income recognition. I almost had a client made the management team redundant because they did not understand restricted funds – pror year had income, current year expenditure and they did not understand. Fortunately they had just become a client and we were able to explain, but does mean that many smaller organisations may not understand their financial statements

  • 29 December 2020 at 7:57 am

    I prefer a Top: Assets – Liabilities = Bottom: Funds; however currently fund balance is getting the norm of most NGO’s.

    Initially, when donors would remit funds to grantees they would recognize this into the income statement as income and i think even the small organizations are still practicing this.

    However, there must be a common practice that is acceptable across the board for all NGO’s whether small, medium or big to have one standard way of presenting the reports and recognizing income.

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