Question

In: Accounting

Distinguish between the accounting treatment of time-restricted pledges by private and public sector colleges and universities.

Distinguish between the accounting treatment of time-restricted pledges by private and public sector colleges and universities.

Solutions

Expert Solution

Difference between the public and private colleges and universities

On the Basis of S.no. Public Private
Colleges and Universities 1 These are Governmental Higher Learning Institutions These are Non Governmental Higher Learning Institutions.
2 Large proportion of the revenue comes from state appropriations and research grants Here, comes from tutions, private contributions and research grants
3 Revenue also collected from local property tax assessments. These may be either not for profit or for profit
Standard Setting Authority 1. GASB has primary authority over government related (public) colleges. FASB has primary authority over private colleges.
2 GASB requires public colleges and universities to report on unrestricted, restricted and net investment in capital assets FASB requires private colleges and universities to report on the changes in unrestricted, temporarily and permanently restricted net assets of the entity.
Intangible Assets In case of intagible assets, GASB report as a classification within the capital assets. It reports as seperate classification usually below the capital assets.

OperatingStatements

GASB report seperately on operating and non operating activities. It's a single step or multiple step format.Net assets released from any purpose or time restrictions.
Cash Flows GASB use Direct Method includes operating, investing, noncapital financing. FASB use both direct and indirect method includes operating, investing and financing

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