2021Bylaws

Page 6 (d) Dues and assessments —Dues, per capita tax, and hospital assessments are accrued for all members at the beginning of the fiscal year, but are reduced at the end of the year for members demitted and for members suspended for nonpayment of dues. (e) Inventories —Inventories are stated at the lower of cost using first in, first out (FIFO) or market. (f) Investments —Investments in stocks and bonds are stated at fair market value. The net realized and unrealized gains and losses on investments are reflected in the statement of activities under “Investment return, net.” (g) Property, equipment and paraphernalia —Property, equipment and paraphernalia are stated at cost. Maintenance and repairs are charged to operations as incurred. At the time items are retired or disposed of, the applicable cost and accumulated depreciation are cleared from the accounts and the difference, net of proceeds, is charged or credited to operations. (h) Income taxes —Shriners International has obtained exemption from income taxes under Section 501 (c)(10) of the Internal Revenue Code. This exemption includes all subordinate Shrine temples. However, certain other revenues such as advertising may be subject to taxation. (i) Use of estimates —Management of the temple has made a number of estimates and assumptions that affect certain reported amounts and disclosures in these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. (j) Contributed services —No amounts have been reflected in the financial statements for donated services. The Temple pays for most services requiring specific expertise. (Note: You are required by FASB 116 to disclose only contributions of services that (a) create or enhance nonfinancial assets or (b) require specialized skills that would typically need to be purchased if not provided by donation.) (k) Asset and liability liquidity —On the Statement of Financial Position, the assets have been presented in current and non-current asset and liability format. (l) Life membership —Money received from Nobles purchasing life memberships shall be placed in a perpetual fund. Only income from the fund may be withdrawn and used for the operating expenses of the temple, unless temple bylaws provide for the release of dues upon the death of the life member. 2—Adoption of NewAccounting Pronouncement FASB Accounting Standards Codification became effective for interim and annual periods after September 15, 2009. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The guidance in the ASU supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the statement of financial position for all leases with terms longer than 12 months. Leases will be classified as either finance or operating with classification affecting the pattern of expense recognition in the statement of activities. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In August 2016, FASB issued ASU No. 2016-14, Not-for-Profit Entities (Topic 958): Pre - sentation of Financial Statements of Not-for-Profit Entities, which changes presentation and disclosure requirements for not-for-profit entities to provide more relevant information about their resources (and the changes in those resources) to donors, grantors, creditors, and other users. These include qualitative and quantitative requirements in the following areas: net asset classes, investment return, expenses and liquidity and availability of resources. The standard is effective for not-for-profit organizations for periods beginning after December 15, 2017.

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