- - - Rejoice in the Lord always ... again I say Rejoice !!! - - -

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                                 TO:  Interested Churches                                                                                                                 FROM: Jim Bramer, Retired CPA
                                                                                                                                                                                                  FILE: 5709-07/Chu

                                  RE:  Church Sample "Annual Summary of  Significant Accounting Policies"                    UPTD:  May 03, 2008

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SAMPLE CHURCH

Notes to the Annual Financial Statements
For the Years ended June 30, XXX9 
(Below is a sample of such a Note)

NOTE X - Summary of Significant Accounting Policies

        Accrual Basis; Assets, liabilities , revenues and expenditures are recorded on the  accrual basis of accounting, which primarily means that non-cash transactions, such as receivables and payables  are reflected herein. Not for Profit; This corporation is such an entity whereby its accounting is based on the concept of 'accountability' and not 'profitable'; with the objective to record and report  the sources and restrictions of its revenue and expenditures and not to determine a profit.  Pledges; This corporation asks constituents at applicable times of the year to give them a written indication of what they hope to donate in the future. This information is recorded, but no reminder is sent to the constituent.  This is not a formal promise to pay and does NOT warrant reflection as a receivable. Operations Fund; The transactions in this fund include the usual plus the following: a. Costs incurred upon purchase of  tangible or fixed assets. b. Costs incurred for payment of debt service requirements. c. No depreciation or amortization of fixed assets takes place within this Fund.  Capital (or Land, Building and Equipment) Fund; All of the fixed or tangible assets, with applicable debts, are recorded within this fund at cost (or equivalent) at time of acquisition (unless clearly indicated otherwise.) All fixed asset procurements and debt retirement provided by other funds are annually accounted for in this fund. Deprecation is computed herein using the straight line method for the applicable term of years.  Special Funds:  This Fund gives effect to transactions related to monies specially handled because of gift designations or voluntary set-a-sides by the Board. In-Kind Donations;  Such non-cash gifts, if any, are recorded at their objective fair market value when title passes to the corporation; this organization does not record the value of donated services.  Investments; if any, are shown at their known fair market value at the end of a fiscal year.

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     Please Click here for list of Church resources here on www.bcidot.org.  This was UPTD: May 03, 2008   

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