Explain the Purpose of FASB ASC 958-720-45 on Joint-Cost Accounting

question 2

Essay

Explain the purpose of FASB ASC 958-720-45 on joint-cost accounting as it relates to reporting fund-raising and program expenses of a not-for-profit organization. How is this standard applied?

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Definitions:

Volunteer Firefighters

Individuals who voluntarily provide firefighting services, often without pay, to help protect communities from fires and other emergencies.

Fire Call

An emergency communication issued to summon firefighting services to a location where a fire is happening or suspected.

Primary Appraisals

The initial evaluation process in which an individual assesses the relevance, threat, or benefit of a situation.

Secondary Appraisals

The cognitive process of evaluating the possible ways to cope with a threat or challenge after an initial assessment of its potential harm or challenge.