Disclosures Related Primarily to the Statement of Financial Position

Abstract

This chapter discusses different reporting or disclosure requirements related primarily to the statement of financial position. The fair values of common stocks and mutual funds were determined using Level 1 (Observable inputs that reflect quoted prices for identical assets or liabilities in active markets, such as stock quotes) inputs, which were based on quoted prices in active markets. Management believes the fair values of investments to be a reasonable approximation of their exit price. The fair value of a financial instrument is the exit price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Investments in equity securities with readily determinable fair values and all investments in debt securities are measured at fair value in the consolidated balance sheets. This entire portion of the portfolio is classified as trading with investment gain or loss (including realized and unrealized gains and losses on investments, interest, and dividends) included in the excess of revenues over expenses, unless restricted by donor or law. Management is required to make certain estimates in the preparation of the financial statements. Among those significant estimates is the valuation of investments without readily determinable fair values.