Featured Articles

Jan McDaid, CPA
Sep 11, 2023

New disclosures are required upon implementation of Accounting Standard Update (ASU) 2020-07, which was issued by the Financial Accounting Standards Board (FASB) to increase transparency of contributed nonfinancial assets through enhancements to presentation and disclosure.

Contributed nonfinancial assets are also known as, and may be labeled as, gifts in kind, donated goods and services, and in-kind contributions.

Donated securities are not considered contributed nonfinancial assets.

Cryptocurrencies are considered nonfinancial assets.

Elizabeth Hamilton Foley
Aug 21, 2023

This is one of many leverage ratios used to determine the financial viability of an organization. To the extent that assets exceed liabilities, an organization generally poses less risk when applying for a loan. A lender would need to take a closer look if the ratio between assets and liabilities is closer to or above 1 to 1. The basic formula for this ratio is:

               Total Liabilities ÷ Total Assets

Subscribe to Front page feed