Fiqh of Financial Transactions ACNE 4226A

Course description:

The object of this module is to provide the student with understanding of accounting and reporting procedures of the economic activities related to NGOs and other non-for-profit organizations, like voluntary health and welfare organizations VHWOs, hospitals and health care entities, and colleges and universities. It is also aimed at educating the student on how to comply with the FAS116, FAS 117, FAS 124, and FAS 135in NGOs related financial reporting and disclosures. This course also familiarizes the student with the related NGOs financial performance measures and ratio analysis. 

Course Aims:

  • Learn about the three main categories of not-for-profit organizations such as voluntary health and welfare organizations VHWOs, hospitals and health care entities, and colleges and universities.
  • Differentiate between governmental and non-governmental not-for-profit organizations in terms of nature of economic activities as well as relevant accounting standards to be applied at each. 
  • Prepare statements of financial position, net activities, cash flow, and functional expenses for NGOs in accordance with the FAS 116, FAS 117, FAS 124, and FAS 135. 
  • Learn about the three classes of Net Assets in NGOs such as unrestricted, temporarily restricted, and permanently restricted along with the different types of donor restrictions imposed on assets.  
  • Learn the relevant NGOs’ oriented financial performance measures and their appropriate interpretations. 

Course outcomes:

At the completion of the subject, students should be able to: 
  • Understand the difference between governmental and nongovernmental not-for-profit organizations.
  • Understand the nature and related operation of each of the three main categories of NGOs such as VHWOs, hospitals and health care entities, as well as colleges and universities.
  • Understand the accounting treatment as conducted for NGOs and prepare financial statements and related reporting disclosures in compliance with FASB standards.
  • Conduct proper evaluation of NGOs financial performance using the relevant financial ratios.