Which of the following statements is FALSE?
A)Not-for-profit organizations may follow IFRS (Part I)or Part III of the CICA handbook.
B)All not-for-profit organizations should apply similar accounting treatments to like transactions when the needs of the users in the private and public sector are aligned.
C)Not-for-profit revenue recognition criteria mirror those of profit-oriented entities except for contributions.
D)A not-for-profit organization may not disaggregate its financial statements into funds based on legal, contractual or voluntary actions of the entity.

Question

Quizplus · Accepted Answer

This statement is false because not-for-profit organizations may disaggregate their financial statements into funds based on legal, contractual or voluntary actions of the entity. Fund accounting is commonly used by not-for-profit organizations to provide information on the financial activity of specific programs, projects or restricted contributions.

Which of the Following Statements Is FALSE