Notes to combined financial statements.

1. ORGANIZATION

   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 and administers the Peer Review Program on behalf of the American Institute of Certified Public Accountants in California. Arizona and Alaska. The 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 the Foundation are derived primarily from CPAs 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 (Ca.1CPA Institute), a public charity nonprofit organization, was formed in October 2004 to administer scholarship activities, financial literacy and other programs. The activities of the CalCPA Institute are consolidated with the activities of 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. All inter-organization transactions have been eliminated in combination.

   PRINCIPLES OF CONSOLIDATION--All inter-organization transactions have been eliminated in consolidation.

   BASIS OF PRESENTATION--The combined financial statements of the Society and the Foundation have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, the Society and the Foundation classify their net assets and changes in net assets as follows:

   Unrestricted - Net Assets Net assets that are not subject to donor-imposed restrictions or the donor-imposed restrictions have expired. As reflected in the accompanying financial statements and discussed in the notes, the Council has designated a portion of the unrestricted net assets for specific purposes.

   Temporarily Restricted Net Assets--Net assets that are subject to donor-imposed restrictions 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 that are to be held in perpetuity as directed by donors. The income from these net assets 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. Genera I ly. the donors of assets allow the Society and the Foundation to use all or part of the income earned on the related investments for unrestricted or specific (temporarily restricted) purposes.

   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.

   CONCENTRATION OF CREDIT RISK--Financial instruments that potentially subject the Society and the Foundation to concentrations of credit risk consist of cash: deposits and investments. Cash balances may exceed Federal Deposit Insurance Corporation insurable limits. Management believes that the Society and the Foundation are not exposed to any significant credit risk related to cash and equivalents. Investments are subject to a formal investment policy, which provides for diversification and oversight.

   ACCOUNTS RECEIVABLE--Accounts receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts. The allowance is established based on factors such as historical experience, credit quality and the age of the account balances. As of April 30, 2014 and 2013, the total combined allowance for doubtful accounts was $8 and $13, respectively.

   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 is reported net of related investment expenses.

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