NAS for NPO

What is the key difference between the Chart of Accounts (COA) and Activity Codes?

• COA is for transactions, Activity Codes are for project reportings

• COA is for revenue, Activity Codes are for expenses

• COA is standardized, Activity Codes are customized

• COA is for internal use, Activity Codes are for external us

An NGO has received a donation of asset worth NPR 100,000. How should this property be accounted for?

• Donation Account Debit XX

  To, Capital Reserve XX

• Asset Account Debit XX

  To, Deferred Revenue XX

• Asset Account Debit XX

  To, Capital Reserve XX

• Donation Account Debit XX

  To, Deferred Revenue XX

If an NGO has a tax exemption certificate, which income should it report in its tax return?

• Anuscuhi 5

• Anusuchi 5 (ka)

• Anusuchi 13

• Anusuchi 2

Which of these are related party transactions?

• Expenditure incurred by Board on monitoring visit NPR. 100,000

• Expenses of Rs. 10,000 incurred during the board meeting.

• Receiving services worth Rs. 10,000 from the daughter of Executive Director.

• Purchasing equipment worth Rs. 500,000 from the close friend of chairperson.

How would NGO record the vehicle with purchase Rs. 250,000 (current value Rs. 100,000) purchased 10 years back on a project, which was not recorded in the accounting books, be accounted for?

• By creating a capital reserve of Rs. 100,000

• By creating deferred revenue of Rs. 100,000

• You do not need to account for the asset.

• By creating capital reserve of Rs. 250,000

Ngo entered into project agreement of Rs. 20,000. Fund received for Project amounting to Rs. 10,000. and Expenditure Rs. 12,000 during the period. What would be income recognized for the period ?

• Income NPR. 10,000

• Income NPR.12,000

• Income NPR. 20,000

• No need to recognize income

What will be the income? Donations from Simon received NPR.10,000, Expenditure NPR. 18000

• Income NPR. 10,000

• Income NPR. 8,000

• Income NPR. 2,000

• Income NPR. 18,000

What does "designated fund" mean?

• Fund designated by the donor for specific purpose

• A fund set aside for a specific purpose by governing body of NPO

• Funds reserved for emergency purposes.

• Fund designated by the Nepal Government

How should the NGO account for the land received from the government at a fair market value equivalent to NPR 10,000 for its use? The ownership of land has not been transferred to NGO.

• Capitalize it as an asset.

• Record as deferred revenue

• Disclosed in notes

• Record as Capital Reserve

How should the NGO account for the purchase of fixed assets for the ongoing project?

• Record it as depreciation expense.

• Capitalize it in the project fund.

• Do not account for it.

• Expense it as project costs.