(1)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The non-consolidated financial statements of Bangladesh-American Center (the Center) have been prepared on the accrual basis of accounting, inconformity with generally accepted accounting principles. Preparation of the financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, including contingencies at the date of the financial statements and the reported revenues and expenses during the reporting period. Actual result may differ from the estimates.
The Center presented the non-consolidated financial statements in accordance with Statement of Financial Accounting Standards (SFAS) No. 116, “Accounting for Contribution Received and Contribution Made,” SFAS No. 117, “Financial Statements of Not-for-Profit Organizations” and SFAS No. 124, “Accounting for Certain Investments Held by Not-for-Profit Organizations.”
SFAS No. 117 establishes standards for external financial reporting by not-for-profit organizations and requires that resources be classified for accounting and reporting purposes into three net assets categories according to donor imposed restrictions or by law. SFAS No. 116 requires that unconditional promises to give (pledges) be recorded as be recorded as receivables and revenues and requires the organization to identify contributions received for each net assets category in accordance with donor-imposed restrictions (see related note 2 also). SFAS No. 124 requires that the Center marketable fixed income and equity securities be recorded at fair market value rather than cost and other investments are stated at cost or amortized cost (see related note 3 also).
Unrestricted net assets generally result from operating and non-operating revenues and gains generated by the Center from its core activities that are neither temporarily nor permanently restricted by donor imposed stipulations. Revenues and gains with explicit donor stipulations are reported as temporarily restricted or permanently restricted net assets.
Temporarily restricted net assets include contributions, investments income, and gains for which donor-imposed purposes and/or time restrictions have not been satisfied. Donor restricted contributions whose restrictions are satisfied in the current reporting period are reported as unrestricted revenue by the center.
Permanently restricted net assets result from donor imposed stipulations on contributions, and other assets which neither expired by passage of time nor can be fulfilled or otherwise removed by actions of the Center or by the action of the Association.
(2)
CONTRIBUTIONS
SFAS No. 116 requires that the centers to record unconditional promises to give (pledges) be recorded receivables and revenues and requires the organization to identify contributions received for each net assets category in accordance with donor-imposed restrictions (see note 1). The ad hoc committee of the Center has assigned a committee, Friends of Bangladesh-American Center (FOBAC), to collect pledges on behalf of the Center. FOBAC was initiated toward the end of this current reporting year. The Center beliefs that FOBAC will play a vital role in supporting the Center’s goals. FOBAC is in its initial phase, therefore, the Center could not reasonably estimate the pledges and the net realizable value of the receivable at the end of the current reporting period. As of November 30, 2001, the Center did not include any pledges as part of revenues or receivable for the financial statements reporting purposes.
(3)
INVESTMENTS
As of December 31, 2001, the center did not invest any money to any fixed income or equity securities.
(4)
PROPERTY AND EQUIPMENT
Property and equipment is recorded at acquisition cost and consists of the following at December 31, 2001:
Useful Life (years) Total
Land - $137,576.12
Building - -
Furniture and equipment - -
Construction in progress - -
Less: Accumulated Depreciation - -
Total $137,576.12
Depreciation expenses for 2001 totaled $0.00.
(5)
LIABILITIES
The center could not raise the total purchase price of the land (see note 4 for total value of the land). An individual agreed to pay $44,000.00 on behalf of the Association. It is the Center’s intention to payoff the loan to the individual. If the Center, in any case, fails to fulfill its obligation, neither the Center nor the Bangladesh Association, or any of its members for that matter, will be held liable in the court of law. Moreover, this individual cannot claim the Center’s or the Bangladesh Association’s any asset in the court of law to satisfy the obligation.
(6)COMMITMENTS AND CONTINGENCIES
The Center does not have any self-insurance, which would protect the Center from any liabilities or adverse claims. However, the Center has never been named as a plaintiff or defendant in any claims or damage. The Center does not foresee any changes in our commitments and contingencies in near future.