The Southwestern Historical Quarterly, Volume 106, July 2002 - April, 2003 Page: 165
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Affairs of the Association
TEXAS STATE HISTORICAL ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2001
NOTE 1-Organization and Summary of Szgnzficant Accountzng Policzes
The Texas State Historical Association (the Association) is a nonprofit organization formed in
1897. The Association's purpose, as expressed in its bylaws, is to foster the appreciation, under-
standing and teaching of the rich and unique history of Texas through programs and activities
to encourage and promote research, preservation and publication of historical material affecting
the State of Texas.
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting
in accordance with generally accepted accounting principles. Net assets and revenues, expens-
es, gains, and losses are classified based on the existence or absence of donor-imposed restric-
tions. Accordingly, net assets of the Association and changes therein are classified and reported
Unrestricted Net Assets-Net assets that are not subject to donor-imposed stipulations.
Temporarily Restricted Net Assets -Net assets subject to donor-imposed stipulations that may or
will be met, either by actions of the Association and/or the passage of time. When a restriction
expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported
in the statement of activities as net assets released from restrictions.
Permanently Restricted Net Assets-Net assets subject to donor-imposed stipulations that they be
maintained permanently by the Association. Generally, the donors of these assets permit the As-
sociation to use all or part of the income earned on any related investments for general or specif-
Contributions and Membershzp Fees
Contributions, including unconditional promises to give, are recorded as made. All contribu-
tions are available for unrestricted use unless specifically restricted by the donor. Membership
fees are recorded as income m the year in which the fees are received.
The preparation of financial statements m conformity with generally accepted accounting princi-
ples requires management to make estimates and assumptions that affect certain reported
amounts and disclosures. Accordingly, actual results could differ from those estimates.
Cash and Cash Equzvalents
For purposes of the statement of cash flows, the Association considers all unrestricted cash and
other highly liquid investments with initial maturities of three months or less to be cash equiva-
The Association follows Statement of Financial Accounting Standards (SFAS) No. 124, Account-
ng for Certazn Investments Held by Not-for-Profit Organzzations. Under SFAS No. 124, investments in
marketable securities with readily determinable fair values and all debt securities are valued at
their fair value in the statement of financial position with any realized or unrealized gains and
losses reported in the statement of activities.
Inventory includes various publications and books. Inventory is accounted for under the first-in,
first-out (FIFO) method and carried at the lower of cost or market value.
Inventory also contains a collection of rare books, pamphlets and broadsides that were donated
to the Association m 1998 and recorded at their fair value. The donor stipulated that the books
were to be held for two years and a day, which will be approximately July 1, 2ooo. At that time
the Association can sell the collection and the donor will stipulate how the proceeds can be used
by the Association. As of August 31, 2ooo, the Association still had possession of the original
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Texas State Historical Association. The Southwestern Historical Quarterly, Volume 106, July 2002 - April, 2003, periodical, 2003; Austin, Texas. (texashistory.unt.edu/ark:/67531/metapth101223/m1/193/: accessed January 23, 2019), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting Texas State Historical Association.