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Re: In-Kind Services



On 23 Mar 2005 at 17:39, Gunther Meisse wrote:

> I thought it appropriate that I comment on the thread that has been
> circulating on the -bb regarding the "In-Kind Services".
> Just to set the record straight: The inclusion of In-Kind Services 
on our
> operating statement does not effect the bottom line at all. All 
those valued
> services are posted as "credits" to the Income side of the 
statement and an
> equal and offsetting "debit" amount is either posted to an Expense 
account
> or capitalized on the Balance Sheet and then expensed on the 
expense side of
> the operating statement.. With other words, the transaction is a 
wash...
> The purpose of the In-Kind tabulations and inclusions is to 
illustrate to
> outsiders, and members, the amount of work that is being donated to 
AMSAT in
> the course of executing our Program of Work. It gives a better 
overall
> picture of the scope of our endeavor.
> This practice is perfectively acceptable under "Generally Accepted
> Accounting Practice" and is often done by many organizations. 

Thank's Gunther

I do some reverse calculus from page 3 on 2003 financial report base 
on what you said above.

I take out all the functional expenses and i got 346859$ exactly the 
total on page 11. i do the same for the revenue section lets called 
it "functionnal revenue" and i got 408336$ subtracting on by the 
other i got a gain of 61477$ and it seems to be very close from the 
statements of cash flow figures on page 4.

Bottom line am i correct if i say the 61477$ is not too far away from 
the truth?

Suggestion

As a casual financial statements reader and for the sake of clarity 
and ease to read i suggest you to added as written in the 2003 annual 
report page 10 and 11 the same type of financial revenue expenses 
statement. Its clear, simple, quick to read and this will avoid 
misinterpretations. No need to make it audited only put it as an 
explaining note report.

Keep this new way of reporting AMSAT finance if you still feel it  is 
useful but a simple note saying you evaluated the "in kind" services 
to an XYZ amount will be much better than adding it on one side and 
subtracting it on the other side of the statement sheet.

Why complicated simple things?



"-"
Luc Leblanc VE2DWE
Coordonnateur AMSAT Quebec coordonnator
AMSAT 33583
www.qsl.net/ve2dwe 
----
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