The fourth step is to actually generate a budget based on the analysis that was made of the company's goals for the coming year and the analysis of past performance (the operating statements
from previous periods).
117, all private, nonprofit organizations complying with the audit guides have been required to report revenues and associated expenses in their operating statements
. This requirement is illustrated in Exhibit I, Item 6.
After evaluating the reaction to the 1987 ED, the GASB issued a second ED that attempted to deflect many of the criticisms of the original proposal by separating the operating statement
requirements of the proposed new MFBA from their potential balance sheet implications.
However, financial resources, as reported in the operating statement
, are not affected by debt financing of operations.
Adoption of an operating statement
orientation for pension accounting is a logical extension of these concepts, and the GASB ED addresses primarily how annual pension expense should be measured.
An operating statement
, showing total income, total expense (including depreciation), and the difference between total income and total expense, is essential for a fair presentation of results of a college's operations.
It reconciles sources/inflows of resources on a budgetary basis to total revenues reported on the statement of revenues, expenditures, and changes in fund balances (operating statement
) in step one.
We regard the published operating statement
as upbeat, despite a shift in the company sales pattern more towards semi-finished goods: NLMK has upgraded its 4Q2010 target profit margin, and the company's positive comments on the current market situation should bolster additional support for its stock.
The volume of milk going through a cooperative's operations has an impact on efficiency and per unit costs, so the operating statement
items are expressed on a per cwt of total milk handled basis.
The following shows part of an operating statement
submitted by a struggling hotelier in Orlando.
The traditional "profit and loss," or "income," statement needs modification in three ways, two of which are touched on above, along with a name-change, to "Operating Statement
." That would suggest a representation of the business' current operations, without the emphasis on accrual-based profits.
The Appraisal Institute Commercial Database[TM], developed in conjunction with PropertyFirst, is the first-ever national online cooperative of appraiser-verified commercial property sale, lease and operating statement