Statements of Financial Accounting Standards (SFAS) 116 and 117; Assignment

Statements of Financial Accounting Standards (SFAS) 116 and 117; sample Executive Summary - Assignment Example The first has permanent restrictions whereby the donor avails funds to the beneficiary for a particular use only. The second imposes temporary restriction that limits the use of the resource for specific purpose and time. As long as the recipient meets the specified condition they are free to use the available resources without further limitations. Finally, the standard may be unrestricted thus allowing the recipient to use the donor’s resources to satisfy their needs unconditionally (McCarthy et al., 2012). On the other hand, SFAS 117 illustrates how non-for-profit organizations should account for their donations in the financial statements (McCarthy et al., 2012). The standard stipulates three financial statements that can be used by not-for-profit organizations to report their financial information. They include, â€Å"statement of financial position, statement of cash flows and statement of activities† (McCarthy et al., 2012). In the statement of activities income and expenditures focus on the entire organization and individual