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Difference between revisions of "Non-Profit Finances and Borrowing (Societies Act FAQs)"
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Non-Profit Finances and Borrowing (Societies Act FAQs) (view source)
Revision as of 23:59, 29 January 2024
, 29 January→What is the difference between accounting records and financial statements?
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Financial statements and accounting records are not the same thing. | Financial statements and accounting records are not the same thing. | ||
Financial statements are a broad overview of the non-profit’s financial position, presented | Financial statements are a broad overview of the non-profit’s financial position, presented to members at each AGM. Financial statements generally include four documents: Income Statement, Balance Sheet (Statement of Financial Position), Statement of Cash Flows, and Equity Statement (Statement of Retained Earnings). | ||
Accounting records is a broad category which includes details on individual financial transactions such as the date and amount of deposits or withdrawals, cheque numbers, bank account numbers, daily balances, etc. Normally it is called the ''general ledger''. Since there is much more detailed and sensitive information in accounting records, it may be in the non-profit’s best interest to restrict access to such records. | Accounting records is a broad category which includes details on individual financial transactions such as the date and amount of deposits or withdrawals, cheque numbers, bank account numbers, daily balances, etc. Normally it is called the ''general ledger''. Since there is much more detailed and sensitive information in accounting records, it may be in the non-profit’s best interest to restrict access to such records. | ||
Non-profits may restrict access to records listed under s. 20(2) of the ''Societies Act'', which includes accounting records. Non-profits may not restrict access to records listed under s. 20(1), which includes financial statements. For more on recordkeeping, see [[Non-Profit_Recordkeeping_and_Privacy_(Societies_Act_FAQs)|Non-Profit Recordkeeping and Privacy]]. | Non-profits may restrict access to records listed under s. 20(2) of the ''Societies Act'', which includes accounting records, in the non-profit's bylaws. Non-profits may not restrict access to records listed under s. 20(1), which includes financial statements. For more on recordkeeping, see [[Non-Profit_Recordkeeping_and_Privacy_(Societies_Act_FAQs)|Non-Profit Recordkeeping and Privacy]]. | ||
===Do we need to submit financial statements to the Registrar?=== | ===Do we need to submit financial statements to the Registrar?=== | ||
