Statement of Functional Expenses

Authored by Andrew Prather, CPA, Clark Nuber
About this Course

Like many other businesses, not-for-profits (NFPs) incur costs such as salaries, rent and utilities. Unique to NFPs is the requirement that those expenses be classified in the financial statements according to purpose, or function, for which they were used.

The statement of functional expenses assists readers of the NFP's financial statements in associating expenses with the service efforts and accomplishments of the organization. Users of this information include donors, volunteers, rating agencies, creditors and constituents of the NFP. A well-designed expense allocation system and corresponding statement of functional expenses is of utmost importance for successful reporting in the NFP environment.

This CPE course offers you detail-rich examples and case studies that will help you allocate costs and accurately prepare the statement of functional expenses.

Included in the course resources are various financial statement examples and common ratios used in analyzing NFP financial statements.

Who will it benefit?
CPAs, financial professionals and NFP staff and board members looking to deepen their existing knowledge of NFP financial responsibility, and set themselves apart as a leader in this field
$ 69.00
AICPA Member Price: $ 59.00
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NASBA Field of Study
Accounting - Governmental
CPE Credits
Previous auditing experience
Delivery Method
QAS Self-Study
Advance Preparation
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