Report of the Committee on Not-For-Profit Organizations, 1972-73.

Abstract The article presents the text of the 1972-73 report of the American Accounting Association Committee on not-for-profit organizations (NFP). The activities of most NFP organizations, particularly governments, may be categorized as either "business-type" or "government-type." Business-type activities are those that are intended to be selfsupporting through time. Though the capital required to establish or expand such activities may be provided in various manners--by donation, grant, general debt issue, or intransit transfer--their routine operations, at least, are financed through consumer or user charges. Accounting for business-type activities of NFP organizations parallels that of similar privately owned enterprises. Statements of financial position, changes in financial position, results of operations (net income), and changes in unreserved or total retained earnings typically are prepared. Most contemporary accounting, reporting and auditing issues in the public sector concern the government-type or general government activities. These are accounted for through a series of expendable fund and nonfund (listings of fixed assets and noncurrent liabilities) account group entities.