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