Notes to the combined financial statements.

PositionAnnual report
  1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

    The California Society of Certified Public Accountants (Society) is a nonprofit incorporated membership organization whose purpose is to advance the profession of accountancy in the State of California. The Society provides its members with general and technical resources through its chapters and committees. California Certified Public Accountants Education Foundation (Foundation) is a nonprofit public benefit corporation organized to provide continuing professional education to Certified Public Accountants (CPAs) and other interested parties. The Society is governed by the CalCPA Council (Council) which is elected by the membership of the Society. The Foundation is governed by a Board of Trustees. Revenues for the Society and Foundation are derived primarily from certified public accountants in California. The Society and the Foundation share administrative functions. Such costs are allocated between the entities based on their estimated share. The California CPA Institute (CalCPA Institute), a nonprofit organization under Internal Revenue Code Section 501 (c)(3), was formed in October 2004 to administer scholarship activities, financial literacy and other programs. The activities of the CalCPA Institute are included in the Society.

  2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    PRINCIPLES OF COMBINATION-The Board of Trustees of the Foundation consists of members of the Society who are elected by the governing Council of the Society. Because of common control by the Council, the accompanying financial statements reflect the combined statements of the Society and the Foundation.

    PRINCIPLES OF CONSOLIDATION-The CalCPA Institute is reflected in the financial statements of the Society. Selected financial information of the CalCPA Institute as of April 30, 2010 and 2009, and for the years then ended is presented in Note 5.

    BASIS OF PRESENTATION-The combined financial statements of the Society and Foundation have been prepared on the accrual basis. The Society and the Foundation report information regarding their financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted let assets, and permanently restricted net assets as follows:

    Unrestricted net assets--Net assets that are not subject to donor-imposed stipulations.

    Temporarily restricted net assets--Net assets subject to donor-imposed stipulations that may or will be met either by actions of the Society or the Foundation and/or the passage of time.

    Permanently restricted net assets--Net assets to be held in perpetuity as directed by donors. The income from the contributions is available to support activities as designated by the donors.

    Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited by donor-imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains and losses on assets and liabilities are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor restriction or by law.

    CASH AND EQUIVALENTS-Cash and equivalents consist of cash on hand and highly liquid investments with original or remaining maturities of three months or less at the time of purchase.

    ACCOUNTS RECEIVABLE-Accounts receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts. Management of the Society and the Foundation uses the allowance method to account for uncollectible accounts receivable balances. The allowance is established based on factors such as historical experience, credit quality and the age of the account balances in determining the appropriate allowance. The total combined allowance for doubtful accounts was $17 at both April 30,2010 and 2009.

    INVESTMENTS-Investments are stated at fair value. Unrealized and realized gains and losses are included in investment income reported on the combined statements of activities. Investment income (loss) is reported net of related investment expenses.

    PROPERTY AND EQUIPMENT-Acquisitions of property and equipment of $1 or more are capitalized. Property and equipment are stated at cost and depreciation or amortization is computed when assets are placed in service using the straight-line method over estimated useful lives of 3 to 10 years. Leasehold improvements are amortized over the lease term.

    DEFERRED LEASE COSTS-Rent expense is recognized on a straight-line basis over the lives of the leases. Deferred lease costs represent rent expense recognized in excess of rental payments made.

    REVENUE RECOGNITION-Membership dues are recognized as revenue over the membership period. Peer review registration fees are recognized over the calendar year. Peer review processing and review fees are recognized when review engagements are completed. Revenues from professional education programs are recognized in the periods the programs are held. Advertising revenues are recognized when the services are rendered. Revenues collected in advance are deferred until earned.

    ADVERTISING COSTS-Advertising costs consist primarily of radio advertisements, catalogs and...

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