STATEMENT OF SFAS No.

FINANCIAL ACCOUNTING STANDARDS

45
INDONESIAN INSTITUTE OF ACCOUNTANTS

FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS

FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45 FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

Financial Accounting Standard (PSAK) 45, FINANCIAL STATEMENTS FOR INTRODUCTION 01-05
NON-PROFIT ORGANIZATIONS, was approved by the Financial Accounting Objective
Standards Committee on 20 December 1997 and legalised by the National
Council of the Indonesian Institute of Accountants on 23 December 1997. Scope 01-04
Definitions 05
This Standard is not applicable for immaterial items.

EXPLANATION 06-34

Jakarta, 23 December 1997 Objective of Financial Statements 05-08

Financial Reporting for Non-Profit Organizations 09-34
National Council Balance Sheets 10-18
Indonesian Institute of Accountants Objective of Balance Sheets 10-11
Classification of Assets and Liabilities 12-13
Financial Accounting Standards Committee Classification of Restricted or Non-Restricted Net Assets 14-18
Operating Statements 19-32
Jusuf Halim Chairman Objective and Focus of Operating Statements 19-20
Istini T. Sidharta Vice Chairman Changes in Net Assets Group 21-22
Mirza Mochtar Secretary Classification of Revenue, Expenses, Gain and Loss 23-26
Hein G. Surjaatmadja Member Information of Revenue and Expenses 27-28
Katjep K. Abdoelkadir Member Information of Rendering Services 29-32
Wahjudi Prakarsa Member Cash Flows Statements 33-34
Jan Hoesada Member Objective of Cash Flows Statements 33
Nur Indriantoro Member Classification of Cash Receipts and Cash Disbursements 34
Rusdy Daryono Member
Siti Ch. Fadjriah Member STATEMENT OF FINANCIAL ACCOUNTING STANDARD No. 45
Sobo Sitorus Member FINANCIAL REPORTING FOR NON-PROFIT
Timoty E. Marnandus Member ORGANIZATIONCONCLUSION……………………………………… 35-48
Mirawati Soedjono Member
Osman Sitorus Member Effective Date 48
Jusuf Wibisana Member
Yosefa Sayekti Member
Heri Wahyu Setiyarso Member

CONTENTS
Paragraph
FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45
INTRODUCTION
The characteristics of non-profit organisations are different to profit-oriented
organizations. The essential distinction is the source of the organisation’s
resources to finance its activities. Non-profit organizations’ resources are
donations from members and other contributors who do not expect to receive any
benefits from the non-profit organisation.
As a result of such characteristics, there are specific transactions undertaken by
non-profit organisations which rarely occur in profit-oriented organisations such
as donations and grant receipts. However, there are many non-profit
organisations which are difficult to distinguish from a profit-oriented
organisation. Notwithstanding their lack of ownership, some non-profit
organisations finance capital from loans, and finance operations from income
received by rendering services to the public. Accordingly, the measurement of the
amount of cash flows, their timing and their certainty become important
performance measurements for the users of the non-profit organisation’s financial
statements which may include creditors and lenders. Such non-profit
organisations have characteristics which are similar to profit-oriented
organisations.
The users of a non-profit organisation’s financial statements evaluate:
a) the services rendered by the non-profit organisation and its ability to
continue rendering such services; and
b) how management have satisfied their responsibilities and to judge
management’s performance.
The ability of a non-profit organisation to continue rendering services is
communicated via the balance sheet which provides information on assets,
liabilities, net assets and the relationship between those elements. The balance
sheet should also separately disclose restricted and unrestricted net assets.
Management’s ability to operate the non-profit organisation’s resources,
including those received from contributors, are presented in the statement of
activity and statement of cash flow.
Objective
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FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45
The objective of this standard is to prescribe financial statement reporting for
non-profit organisations to make such statements more understandable, relevant
and comparable.
Scope
01.This standard is applied for financial statements presented by non-profit
organisations that fulfil the following characteristics:
a) resources are from contributors who do not expect to receive any re-payment
or benefits from the non-profit organisation in proportion to the resources
contributed;
b) produce goods and/or services without intention to profit and, if the entity
generates profit, it is never distributed to the members / contributors.
c) there is no ownership that is saleable, replaceable or refundable, and there is
no claim on resources in the event of liquidation.
02. This standard is not applicable for government institutions, departments
or other similar organisations.
03. Financial statements of non-profit organizations consist of balance sheets,
statement of activities, statement of cash flows and notes thereto. The financial
statements are generally different from financial statements of profit-oriented
organizations.
04. This standard establishes basic information that should be disclosed in the
financial statements of non-profit organisations. Matters not specifically
addressed in this standard should be referred to generally accepted accounting
standards.
FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45
Definitions
05. The following are definitions of terms used in this standard:
Permanent restriction is limitation on the use of resources determined by the
contributors to maintain the resources permanently, however the non-profit
organisation is permitted to use part or all income or other economic
benefits generated from using those resources.
Temporary restriction is limitation on the use of resources determined by the
contributors to maintain the resources until a particular date or until such a
particular condition is achieved.
Restricted donations are resources for which the use of which is limited by
the contributors for a specific reason. Such limitations could be permanent
or temporary.
Unrestricted donations are resources for which the use of which is
unlimited.
EXPLANATION
Objective of Financial Statements
06. The primary objective of financial statements for non-profit organisations
is to provide relevant information for use by contributors, members, creditors and
other financial statement users who provide resources.
07. The users of a non-profit organisation’s financial statements
evaluate:
a) the services rendered by the non-profit organisation and its ability to
continue rendering such services; and
b) how management have satisfied their responsibilities and to judge
management’s performance.
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FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45
08. The objective of a non-profit organisation’s financial
statements, including the notes thereto, is to provide information concerning:
a. the amount and nature of assets, liabilities and net assets;
b. the effect of transactions, events and other situations that impact on the
amount and nature of net assets;
c. the type and amount of resource inflows and outflows in a period, and the
relationship between them;
d. how cash is obtained and spent, finance received and other factors that have
an impact on liquidity; and
e. the services performed.
Each element of the financial statements provides different information, and
information in financial terms usually compliments other non-financial
information.
Financial Statements for Non-Profit Organizations
09. Financial statements of non-profit organisations are to consist of
balance sheets as of the reporting date, statements of activity and of cash flows
for the reporting period, and notes thereto.
Balance Sheet
Objectives of the balance sheet
10. The objectives of the balance sheets are to provide information on assets,
liabilities, net assets and information on the relationship between those elements
as of a reporting date. Information presented in the balance sheet together with
information in other financial statements can assist contributors, members,
creditors and other interested financial statement users to evaluate a non-profit
organisation’s:
a. ability to continue rendering services; and
b. liquidity, financial flexibility, solvency and external funding requirements.
FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45
11. A non-profit organisation’s balance sheet must present total
assets, total liabilities and net assets.
Classification of assets and liabilities
12. Balance sheet, including nNotes to the balance sheet, are also included in
the financial statements to presents relevant information about liquidity, financial
flexibility and relationship between assets and liabilities. This information is
usually presented in groups of assets and liabilities that have similar
characteristics in a relatively homogeneous group. For example, a non-profit
organisation usually reports each element of assets in a homogeneous account,
such as:
a. cash and cash equivalents;
b. amounts due from patients, students, members and others service recipients;
c. inventory;
d. rent, insurance and other amounts paid in advance;
e. marketable securities and long term investments;
f. land, buildings, equipment and other fixed assets that are used to produce
goods and services.
Cash and other assets which have restricted uses as determined by the
contributors must be separated from unrestricted cash and other assets.
13. Information on liquidity is presented as follows:
a. Presentation of assets based on liquidity, and liabilities based on maturity
dates;
b. Classification of assets as current and non-current, and classification of
liabilities as short term and long term; and
c. Information disclosed in the notes to the financial statements regarding
liquidity of assets, maturity dates of liabilities and restrictions on the use of
assets.
14. Classification of restricted or unrestricted net assets
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FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45
14. The balance sheet presents each group of assets and liabilities included
in net assets regardless of whether limitations on the use of resources have
been determined by the contributors, and therefore includes permanently
restricted, temporarily restricted or unrestricted resources.
15. Information about the nature and amount of permanent and/or
temporary restrictions is disclosed by presenting that amount in the financial
statements and notes thereto.
16. Permanent restriction’s on assets such as (1i) assets, such as land or art,
donated for a specific purpose,; for use and not for sale, or (2ii) assets donated for
investment purposes that will generate permanent income can be reported as
separate items in permanently restricted net assets or in the notes to the financial
statements.
17. Temporary restriction of (1i) donations designated for a certain operation,
(2ii) investments for a designated period, (3iii) the usage of assets for a certain
future period, or (4iv) the acquisition of non-current assets can be reported as
separate items in temporarily restricted net assets or reported in the notes to the
financial statements. Temporary restriction by a contributor can be represented
by time or usage restrictions, or both.
18. Unrestricted net assets commonly consist of income from services and
sales of goods, donations and dividends or proceeds from investments, less
expenses incurred to obtain net income. Restriction of the use of unrestricted net
assets may be imposed by the nature of the non-profit organisation, the operating
environment, the objectives of the non-profit organisation as documented in the
deed of establishment and/or from contractual agreements with suppliers,
creditors and other financial statement users associated with the non-profit
organisation. Information regarding those restrictions are commonly reported in
the notes to the financial statements.
FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45
Statement of activity
The objective of the statement of activity
19. The primary objective of the statement of activity is to provide information
about (ai) the effect of transactions and other events that change the amount and
nature of net assets, (bii) the relationship among transactions and other events,
and (ciii) how resources are utilised in conducting the program or services.
Information in the statement of activity that is read together with other
information in the financial statements can help the non-profit organisation
contributors, members, creditors and other interested financial statement users to
(ai) evaluate performance in a period, (bii) evaluate efforts, capabilities and
ability to continue rendering services, and (ciii) evaluate how management satisfy
their responsibilities and to judge management’s performance.
20. The statement of activity is focused on the non-profit organisation as a
whole, and presents the changes in net assets for a period. The changes in net
assets presented in a statement of activity is that reflected in net assets or
equity in the balance sheet.
The changes of net assets
21. The statement of activity presents the changes in permanently restricted,
temporarily restricted, and unrestricted net assets during a period.
22. Income and profits that increase net assets and expense and losses that
decrease net assets are grouped together as regulated in paragraphs 24-25.
Classification of revenue, expense, gain and loss
23. The statement of activity presents income items as additions to
unrestricted net assets unless utilisation is restricted by contributors, and
presents expense items as deductions from unrestricted net assets.
24. Depending on restrictions imposed, donations are presented as additions
to unrestricted, permanently restricted or temporarily restricted net assets. If
limitations on restricted donations expire during a reporting period, restricted
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FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45
donations can be presented as unrestricted donations provided that
presentation is consistent and that the accounting policy is disclosed.
25. The statement of activity presents gains and losses recognised from
investment and other assets (or liabilities) as additions to and deductions from
unrestricted net assets, unless restrictions exist.
26. Classification of income, expenses, gains and losses in net assets doesn’t
preclude additional classification in the statement of activity. For example, a
non-profit organisation can classify categories effecting net assets as operating or
non-operating, disposable or non-disposable, realised or not realised, normal or
abnormal etc.
Information on revenues and expenses
27. The statement of activity presents gross revenue and expenses although
investment income can be presented net of expenses provided that expenses,
such as depository and investment advisory expenses, are separately disclosed
in the notes to the financial statements.
28. The statement of activityassets presents net gains or losses that are
generated from incidental transactions or other events beyond the non-profit
organisation’s management control. For example, gains or losses on the sale of
unused land and buildings.
Information of providing services
29. The statement of activity orand notes to the financial statements must
present information about expenses based on functional categories classified as
primary and supporting services.
FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45 FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

(a) financing activity:

30. Functional classification can help contributors, creditors and other
financial statement users to evaluate the non-profit organisation’s provision of
services and the utilisation of resources. In addition to presenting expenses by
functional classification, it is recommended that non-profit organisations present
additional information about expenses according to their nature, for example,
salaries, rent, electricity, interest, depreciation etc.
(b) cash receipts from contributors that have long term restrictions.;
(c) cash receipts from donation and investment income, the use of which
is restricted for acquisition, development and maintenance of non-
current assets, or increases in endowments.; and
(d) interest and dividends that have long term restrictions.

31. The provision of goods and services to a recipient, customer or member is (e) disclosure about investment and non-cash financing activities such as
performed to achieve a non-profit organisation’s goals or mission. The provision building and investments received as donations.
of goods and services is the non-profit organisation’s primary objective, and are
undertaken through various primary programs.

32. Supporting activities include all activities in addition to the primary

activity and usually comprise of management and general activities, fund raising
and memberstaff development. Management and general activities include
supervision, business management, bookkeeping, budgeting, financing and other
administrative activities, and all management and other administrative activities
exceptin addition to the program for the provision of goods and services or fund
raising. Fund raising activities include fund raising campaigns and publications,
preparation of mailing lists, special fund raising, preparation and distribution of
information, guidance, and other materials; and another activities related to fund
raising from individuals, foundations, governments and others. MemberStaff
development activities consist of locating new members, collection of
membership fees, public relations and similar activities.

Cash flow statement

Objective of the statement of cash flow

33. The primary objective of the statement of cash flow is to provide

information about cash receipts and disbursements for a period.

Classification of cash receipts and disbursements

34. The statement of cash flow is presented according to PSAK 2, Cash

Flow Statement and with additional information as follows:

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FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45
Statement of Financial Accounting Standard No.45
Financial reporting for non-profit organisations.
Statement of financial accounting standard is consist of paragraph 35-48.
This statement should be read in a context with paragraph 01-34.
Financial statement for non-profit organisations.
35. Financial statements of non-profit organisations are to consist of
balance sheets as of the reporting date, statements of activity and of cash flows
for the reporting period, and notes thereto.
Balance Sheet
Classification of assets and liabilities
36. Information on liquidity is presented as follows:
a. Presentation of assets based on liquidity, and liabilities based on maturity
dates;
b. Classification of assets as current and non-current, and classification of
liabilities as short term and long term; and
c. Information disclosed in the notes to the financial statements regarding
liquidity of assets, maturity dates of liabilities and restrictions on the use of
assets.
Classification of restricted or unrestricted net assets
37. The balance sheet presents each group of assets and liabilities included
in net assets regardless of whether limitations on the use of resources have
been determined by the contributors, and therefore includes permanently
restricted, temporarily restricted or unrestricted resources.
38. Information about the nature and amount of permanent and/or
temporary restrictions is disclosed by presenting that amount in the financial
statements and notes thereto.
Statement of activity
Objective and focus of statement of activity
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FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45
39. The statement of activity is focused on the non-profit organisation as a
whole, and presents the changes in net assets for a period. The changes in net
assets presented in a statement of activity is that reflected in net assets or
equity in the balance sheet.
The changes of net assets
40. The statement of activity presents the changes in permanently restricted,
temporarily restricted, and unrestricted net assets during a period.
Classification of revenue, expense, gain and loss
41. The statement of activity presents income items as additions to
unrestricted net assets unless utilisation is restricted by contributors, and
presents expense items as deductions from unrestricted net assets.
42. Depending on restrictions imposed, donations are presented as additions
to unrestricted, permanently restricted or temporarily restricted net assets. If
limitations on restricted donations expire during a reporting period, restricted
donations can be presented as unrestricted donations provided that
presentation is consistent and that the accounting policy is disclosed.
43. The statement of activity presents gains and losses recognised from
investment and other assets (or liabilities) as additions to and deductions from
unrestricted net assets, unless restrictions exist.
Information of revenues and expenses
44. The statement of activity presents gross revenue and expenses although
investment income can be presented net of expenses provided that expenses,
such as depository and investment advisory expenses, are separately disclosed
in the notes to the financial statements.
Information of providing services
45. The statement of activity and notes to the financial statements must
present information about expenses based on functional categories classified as
primary and supporting services.
Cash flow statement
FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45 FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

Objective of the statement of cash flow

46. The primary objective of the statement of cash flow is to provide

information about cash receipts and disbursements for a period.

Classification of cash receipt and disbursements

47. The statement of cash flow is presented according to PSAK2, Cash Flow
Statement and with additional information as follows:

(a) financing activity

(b) cash receipts from contributors that have long term restrictions;
(c) cash receipts from donation and investment income, the use of which is
restricted for acquisition, development and maintenance of non-
current assets, or increases in endowments; and
(d) interest and dividends that have long term restrictions.

(e) disclosure about investment and non-cash financing activities such as

building and investments received as donations.

Effective date

48. This statement is effective for preparing and presenting financial

statement which cover report period since at or after at January 1, 2000.
Implementation earlier is suggested.

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FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45 FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

APPENDIX

The example of financial statement form

Herein is presented an example of financial statement for non-profit

organisations which is presented to provide some consistency in format and
descriptions. This example may be different from those conditions existing in
certain non-profit organisations and therefore it is advised that a non-profit
organisation should provide the most relevant information that is understandable
by the contributors, creditors and other financial statement users outside of the
non-profit organisation. The preparation of comparative financial statements is
also advisable, however to simplify the following example in this appendix the
statement of cash flows is presented for one period only.

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FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45 FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

Example of Balance Sheet Unrestricted Rp 288,070 Rp 259,175

Temporary restricted (Note B) 60,855 63,675
Non-profit Organisation Permanently restricted (Note C) 355,050 342,500
Balance Sheet ___________ __________
December 31, 19X0 and 19X1 Total net asset 703,975 665,350
(in millions of Rupiahs)
Total liabilities and net asset Rp 730,550 Rp 696,200
___________ _________
19X1
19X0
Example of statement of activity
Assets:
Cash and cash equivalents Rp 188 Rp 1,150 There are three formats for the statement of activity presented in this
Interest receivable 5,325 4,175 appendix, each with its own advantages.
Inventory and prepayments 1,525 2,500
Other receivables 7,562 6,750 1. Format A presents information in a single column and permits easy
Current investment 3,500 2,500 preparation of a comparative statement of activity.
Restricted asset for investment
in land buildings and equipment 13,025 11,400 2. Format B presents information classified into columns and presents the effect
Land, buildings and equipment 154,250 158,975 of the end of restrictions on certain assets. Format B presents the impact
Long term investments 545,175 508,750 of the changes in restricted asset to the net asset reclasification. Format
___________ ___________ B enables the aggregation of information about donation and investment
Total assets Rp 730,550 Rp 696,200 income.

3. Format C presents information in two reports; a total summary of the income

Liabilities and net asset: statement and expenses, and a statement of the changes in unrestricted net
Trade payables Rp 6,425 Rp 2,625 assets. Format C focuses attention on the change in unrestricted net assets,
Returnable unearned revenue 1,625 and is appropriate for non-profit organisations who consider operating
Other payables 2,187 3,250 activities as a separate activity from revenue generated from restricted assets
Notes payable 2,850 and from donations and investment income.
Annual liabilities 4,213 4,250
Long term payable 13,750 16,250
___________ ___________
Total liabilities Rp 26,575 Rp 30,850

Net assets:

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FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45 FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

Format A __________
Non-profit Organisation Total expenses (note F) 79,925
Statement of Activity Loss due to fire 200
For the year ended December 31, 19X1 __________
(in millions of Rupiahs) Total expenses and losses 80,125
____________
Changes in unrestricted net assets: Increase in total unrestricted net assets Rp 28,895
Revenue and earnings: ===========
Donations Rp 21,600
Changes in temporarily restricted net assets:
Donations 20,275
Service revenue 13,500 Income from long term investments (Note E) 6,450
Realised and unrealised income from long term investments
(Note E) 7,380
Actuarial loss for annual liabilities (75)
Income from long term investments (note E) 14,000 Net assets from restricted asset (Note D) (36,850)
------------
Decrease in temporarily restricted net assets
Income from other investments (note E) 2,125 (2,820)
Net income from unrealised long term investments 20,570
Miscellaneous 375
__________ Changes in permanently restricted net assets:
Total unrestricted revenue and earnings 72,170 Donations 700
Income from long term investments (Note E) 300
Net assets becoming unrestricted (note D) : Realised and unrealised income from long term investments
Fulfilment of restriction program 29,975 (Note E) 11,550
Fulfilment of restriction for equipment acquisition 3,750 ____________
Completion of time restriction 3,125
Increase in permanently restricted net assets 12,550
__________ ____________
Total assets becoming unrestricted 36,850 Increase in net assets 38,625
_______________ Net assets at the beginning of the year 665,350
Total revenue, earnings and others donations 109,020 ____________
Net asset at the end of the year 703,975
Expenses and losses:
Program A 32,750
Program B 21,350
Program C 14,400

Management and general 6,050

Fund raising 5,375

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FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

Format B
Non-profit Organisation
Statement of Activity
For the year ended December 31, 19X1
(in millions of Rupiahs)

Non restrictedTemporary RestrictedPermanent Restricted Total

Income, earnings and other donations Rp 21,600 Rp 20,275 Rp 700 Rp 42,575

Delivery services 13,500 13,500
Income from long term investments (note E) 14,500 6,450 300 20,750
Income from other investments (note E) 2,125 2,125
Realised and unrealised income
from long term investments (note E) 20,570 7,380 11,550 39,500
Other 375

Net asset becoming unrestricted

Restriction (note D):
Fulfilment of restriction program 29,975 (29,975)
Fulfilment of restriction for equipment acquisition 3,750 (3,750)
Completion of time restriction 3,125 (3,125)

Total revenue, earnings and donations 109,020 (2,74475) 12,550 118,450

Expense and losses:

Program A 32,750 32,750
Program B 21,350 21,350
Program C 14,400 14,400
Management and general 6,050 6,050
Fund raising 5,375 5,375

Total expenses (note F) 79,925 79,925

Loss due to fire 200 200
Actuarial loss on annual liability 75 75

Total expenses and losses 80,125 75 80,200

Change in net asset 28,895 (2,820) 12,550 38,625

FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

Net assets at the beginning of the year 259,175 63,675 342,500 665,350

Net assets at the end of the year Rp 288,070 Rp 60,855 Rp355,050 Rp 703,975
FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45 FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

Format C -------------------
(Part 1 from 2 part) Total unrestricted expenses and losses 80.125
Non-profit Organisation ___________
Statement of Income, Expense, Changes in unrestricted net asset Increase in unrestricted net assets Rp 28,895
For year ended December 31, 19X1
(in millions of Rupiah)

Unrestricted Revenue and Income:

Donations Rp 21,600
Rendering of services 13,500
Income from long term investments (Note E) 14,000
Income from other investments (Note E) 2,125
Net income from realised and unrealised long term
investments (Note E) 20,570
Other 375
___________
Total unrestricted revenue and income 72,170

Unrestricted net assets (Note D)

Fulfilment of restriction program 29,975
Fulfilment of restriction for equipment acquisition 3,750
Ending of time restriction 3,125
___________
Total unrestricted net assets 36,850
___________
Total revenue, income and other unrestricted
donations 109,020

____________
Expenses and Losses:
Program A 32,750
Program B 21,350
Program C 14,400
Management and general 6,050
Fund rising 5,375
___________
Total expenses (Note F) 79,925

Loss due to fire 200

FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45 FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

___________
Format C Net asset at the end of the year Rp 703,975
(Part 2 from 2 parts)
Non-profit Organisation
Statement Changes in Net asset
For year ended December 31, 19X1
(in millions of Rupiah)

Unrestricted Net assets:

Total unrestricted revenue and income Rp 72,170

Unrestricted net assets (Note D) 36,850
Total unrestricted expenses and losses (80,125)
___________
Increase in unrestricted net assets 28,895
___________
Temporary restricted net assets:

Donations 20,275
Income from long term investments 6,450
Net income from realised and unrealised long term
investments 7,380
Actuarial loss from annual liabilities (75)
Unrestricted net assets (Note D) (36,850)
___________
Decrease in Temporarily restricted net assets (2,820)
___________

Temporary restricted net assets:

Donations 700
Income from long term investments (Note E) 300
Net Income from realised and unrealised long term
investments (Note E) 11,550
___________
Increase in permanently restricted net assets 12,550
___________

Increase in net assets 38,625

Net asset at the beginning of the year 665,350
FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

Format C
(Part 2 of 2: Alternative)
Non-profit Organisation
Statement of Changes in Net asset
For the year ended December 31, 19X1
(in millions of Rupiah)

Unrestricted Temporary Restricted Permanent

Restricted Total

Revenue, income and other donations:

Restricted revenue, income and other donations Rp 72,170 Rp 72,170

Revenue, income and unrestricted donations 20,275 700 20,975
Income from long term investments (Note E) 6,450 300 6,750
Realised and unrealised net income from long term
investments (Note E) 7,380 11,550 18,930
Unrealised net assets (Note D) 36,850 (36,850)

Total revenue, income and donations 109,020 (2,74475) 12,550 118,825450

Expenses and losses:

Unrestricted expenses and losses 80,125 80,125
Actuarial losses from annual liabilities 75 75

Total expenses and losses 80,125 75 80,200

Change in net assets 28,895 (2,820) 12,550 38,625

Net assets at the beginning of the year 259,175 63,675 342,500 665,350

Net assets at the end of the year Rp 288,070 Rp 60,855 Rp 355,050 Rp 703,975
FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45 FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

Cash Flow Statement Interest and restricted dividends for reinvestment 750.0
Direct Method Payment for annual liabilities (363.0)
Non-profit Organisation Payment for notes payable (2,850.0)
Cash Flow Statement Payment for long term liability (2,500.0)
For the year ended at December 31, 19X1 ___________
(in million of Rupiahs) (4,962.5)
___________
Cash flows from operating activities: Net cash received (paid) from financing
Cash from service income Rp 13,050.0 activities Rp (762.5)
Cash from contributors 20,075.0 ___________
Cash from other receivables 6,537.5 Net increase (decrease) in cash and cash equivalents Rp (962.5)
Interest and dividend received 21,425.0 Cash and cash equivalents at the beginning of the year 1,150.0
Others receipts 375.0 ___________
Interest paid (955.0) Cash and cash equivalents at the end of the year 187.5
Cash paid to employees and suppliers (59,520.0)
Other (1,063.5)
___________
Net cash received (paid) from operating
activities (75.0)
___________

Cash flows from investing activities:

Compensation from fire insurance 625,0
Equipment purchases (3,750.0)
Receipts from the sale of investments 190,250.0
Purchase of investments (187,250.0)
___________
Net cash received (paid) for investing
activities (125.0)

Cash flows from financing activities:

Received from restricted contributions:
Investment endowments 500.0
Investment in time endowments 175.0
Investment in buildings 3,025.0
Annual agreement investment 500.0
___________

4,200.0
Other financing activities :
FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45 FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

Reconciliation of the change in net assets to net cash used for operating activities:

Changes in net assets 38,625.0

Adjustment for the reconciliation of the change in
net assets to net asset used in operating activities:
Depreciation 8,000.0
Loss due to fire 200.0
Actuarial loss on annual liability 75.0
Increase in interest receivable (1,150.0)
Decrease in inventory and prepaid expenses 975.0
Increase in others receivables (812.5)
Increase in accounts payable 3,800.0
Decrease in returnable unearned revenue (1,625.0)
Decrease in other payables (1,062.5)
Restricted donations for long term investment (6,850.0)
Interest and dividend restricted for
long term investment (750)
Realised and unrealised net revenue from
long term investments (39,500.0)
___________
Net cash received (paid) for operating
activities Rp (75.0)

Additional data for investing activity and non-cash financing:

Equipment received as a donation Rp 350.0
Exemption from death insurance premium 200.0
FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45 FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

Statement of cash flow ___________

Indirect method
Cash flows from financing activities:
Non-Profit Organisation Receipts from restricted donations:
Statement of Cash flow Investments in endowments Rp 500
For year ended December 31, 19X1 Investments in time endowments 175
(expressed in millions of Rupiah) Investment in buildings 3,025
Annual agreement investment 500
Cash flow from operating activities: ___________
Reconciliation of the changes in net assets to net cash used 4,200
for operating activities: ___________
Changes in net assets Rp 38,625
Adjustments to reconcile changes in net assets that are Other financing activities:
used for operating activities: Interest and restricted dividends for reinvestment 750
Depreciation 8,000 Payment of annual liabilities (363)
Loss due to fire 200 Payment of notes payable (2,850)
Actuarial loss on annual liabilities 75 Payment of long term liability (2,500)
Increase in interest receivable (1,150) ___________
Decrease in inventory and prepaid expenses 975 (4,963)
Increase in other receivables (813) ___________
Increase in trade payables 3,800 Net cash receipts (disbursements) for financing
Decrease in refundable unearned revenue (1,625) activities (763)
Decrease in other payables (1,063) ___________
Restricted donations for long term investments (6,850)
Restricted interest and dividend for long term Net decrease in cash and cash equivalents (963)
investments (750) Cash and cash equivalents at the beginning of the year 1,050
Realised and unrealised net income from ___________
long tern investments (39,500) Cash and cash equivalents at the end of the year 185
___________ ___________
Net cash received (used) for operating activities (75) Additional data:
___________ Investment activities and non-cash financing:
Equipment received as a donation 350
Cash flows from investment activities: Exemption from death insurance premium 200
Payment from fire insurance 825 Interest paid Rp 955
Acquisition of equipment (3,750)
Proceeds from the sale of investments 190,250
Purchase of investments (187,250)

___________
Net cash received (used) for investment activities Rp (125)
FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45 FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

Program activity A:
Notes to the financial statements Purchase of equipment Rp 7,650
Research 10,640
Note A illustrates the disclosure policy required which incorporates notes B and Seminars and publications 3,800
C. Notes D, E and F suggest additional information to be disclosed by non-profit Program activity B:
organisations. All amounts are in millions of rupiah. Repair of broken equipment 5,600
Seminars and publications 5,395
Program activity C:
Note A General 7,420
Building and equipment 5,375
Non-profit organisations present grant or donations in cash or other assets as Annual trustee agreement 7,125
restricted donations if the use of those grants or donations is restricted. If the For the period after December 31, 19X1 7,850
restriction which originated from the contributor has expired, or the objective of ___________
the restriction has been fulfilled, temporary restricted net assets are reclassified as Rp 60,855
unrestricted net assets and are presented in the statement of activity as ___________
unrestricted net assets.

Non-profit organisations present grants or donations of land, buildings and Note C

equipment as unrestricted donations unless there exist explicit restrictions from
the contributor regarding the objective of the utilisation of those assets. Permanently restricted net assets
Donations of fixed assets which have explicit restrictions that state the objective Annual investment revenue is spent to support:
of the utilisation of those assets, and donations in cash or other assets that are to Program activity A Rp 68,810
be used to obtain fixed assets, are to be presented as restricted donations. If there Program activity B 34,155
are no explicit restrictions from contributors about the utilisation of fixed assets, Program activity C 34,155
they are classified as unrestricted assets. Other activities 204,930
___________
342,050
Fund for which income must be added to the original donation 5,300
Exemption from death insurance premium 200
Land for use as a recreation area 7,500
___________
Rp 355,050

Note D

Net assets that are unrestricted by contributors due to the occurrence of certain
expenses or conditions required by contributor.
Note B Removal of restriction achieved:
Program expense A Rp 14,500
Temporarily restricted net assets for a financial period are as follows:
FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45 FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

Program expense B 11,500 expenses Rp.375)

Program expense C 3,975 Dividend, interest and rent 15,000 5,000 750 20,750
___________ Realised and unrealised income 30,000 9,500 39,500
Rp 29,975
___________ Total investment return 45,000 14,500 750 60,250
Amount available for current operation (18,750) (5,000) (23,750)
Equipment for program A purchased and used 3,750 Trustee fund income for current year
___________ and future (450) (450)
Time restriction that have been fulfilled: _________________________
Period has been fulfilled Rp 2,125 ______
Death of annual contributor 1,000 Investments at the end of the year 436,750 90,000 16,925 545,175
___________
Rp 3,125
___________ Component in each investment category and other investment ownership at
Rp 36,850 December 31, 19X1 is presented in the following table:
Group A Group B Others Total

Permanently restricted net assets Rp. 342,050 5,500 347,550

Note E Temporarily restricted net assets 26,880 11,425 38,305
Unrestricted net assets 67,820 91,500 159,320
Investments are recorded at market or appraisal value and income (or loss) that _________________________
has been recognised but not yet realised can be recorded in the statement of ________
activity. Non-profit organisations invest the excess of cash required for daily Rp 436,000 90,000 16,925 545,175
needs in current investments. In Dec 31, 19X1, Rp. 1,400 is invested in the non-
profit organisation’s current account which generates a profit of Rp. 850 per
annum. Most long term investments are divided into two categories; group A
consists of permanent funds and are not required to increase net assets, and group
B are amounts designated by the non-profit organisation’s management which are
intended for long term investment; an example is shown in the following table:

Group A Group B Others Total

Investments at the beginning of the year 410,000 82,000 16,750 508,750

Donations available for investment:
Permanent fund 500 200 700
Temporary fund 175 175
Year trustee fund 500 500
Amount drawn for annual past contributors (1,000) (1,000)
Investment return (net, after deducting
FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45 FINANCIAL REPORTING FOR NON-PROFIT ORGANIZATIONS SFAS No. 45

The board of trustees non-profit organisation’s management implement

regulations that require the permanent endowment fund to be valued at its real
value unless contributors explicitly state another basis. To meet this objective,
management state that net appreciation is maintained permanently as the amount
required to the adjust the historic value of the donation with the consumer price
index. All excesses above the permanent endowment fund can be used for other
appropriate objectives.

In 19X1, the total investment return of group A is Rp. 18,000 (10.6 %), and from
that amount, Rp. 4,620 is retained permanently to maintain the real value of that
donation. The remainder, amounting Rp. 13,380, is available to provide other
objectives as determined by the non-profit organisation’s management.

Note F

Expense incurred consisted of:

Program Management Fund

Total A B C & General
Raising

Salaries and wages Rp. 37,787.5 18,500 9,750.0 4,312.5 2,825.02,400.0

Others expenses 11,875.0 5,187.5 1,875.0 4,312.5
Supplies and travel 7,887.5 2,162.5 2,500.0 1,225.0 600.01,400.0
Service and professional 7,100.0 400.0 3,725.0 1500.0 500.0 975.0
Office 6,320.0 2,900.0 1,500.0 1,125.0 545.0 250.0
Depreciation 8,000.0 3,600.0 2,000.0 1,425.0 625.0 350.0
Interest 955.0 955.0
____________________________________________________________________
Total expenses Rp 79,925.0 32,750.0 21,350.0 14,400.0 6,050.05,375.0