Keywords
Abstract
This research was conducted to determine the current financial reporting practices of the non-profit organizations in the Municipality of Bulan Sorsogon and its compliance to the generally accepted accounting principles. This study also identified the present gaps and issues encountered by accountants and bookkeepers and the ways on how they resolve these emergent issues in the preparation of financial reports for NPOs. Customized financial reporting manual which was prepared in accordance with the applicable generally accepted accounting principles (GAAP) specifically suitable for not-for-profit organizations (NPOs) was the most tangible output of this research. This study used the Mixed Design which falls under a blind spot study. All the practicing accountants, bookkeepers and owners of the Not-for-Profit Organizations (NPOs) which include all duly registered or recognized hospitals, charitable institutions, religious organizations and all private educational institution operating in the municipality of Bulan, Sorsogon served as the primary respondents. The study revealed that there were financial reporting practices employed by bookkeepers and accountants in the preparation of financial statements but these were not consistently applied and most were not appropriate for not-for-profit organizations, the current financial reporting practices were fairly compliant to the generally accepted accounting principles (GAAP), the accountants and bookkeepers tend to comply with CPD requirements, self-study, consult with peers and subject their organization to financial audit in order to solve the gaps and issues they encountered.