Intermediate Accounting Volume I Canadian Edition, Chapter 1, CA 1-5
1) In the given scenario the stakeholders includes:
-- the management, staff and Board of the not-for-profit organization
-- the citizens in the city
-- the federal, provincial or municipal government who are giving the grants for funding the not-for-profit organization
The above stated are stakeholders because they all have a vested interest in ensuring that Save the Trees (STT) succeeds in improving cities with the presence of trees and green space by planting and looking after trees. All those who pay for taxes would want to avail the benefits delivered with the activities of STT. Also the organisation staff and management who invested in the activities would want to reach their mandate. Moreover it is the government responsibility to spend the money wisely in providing its citizens with green spaces with the act of planting and caring for trees that promote physical and mental health of citizens. The government is responsible to maintain and improve the biodiversity for a sustainable city
2) As there not shareholders for not-for-profit organizations and are not participating in typical ventures of business in creating profits, thus there is no goal to amass wealth for owners. The entity should apply GAAP for private sector not-for-profit organizations (NPO) as given in CPA Canada Handbook [Part III, CPA - Accounting Standards for Not-for-Profit Organizations]. The mandate spending for such organizations is imposed by its contributors and members.
Intermediate Accounting Volume I Canadian Edition, Chapter 1, CA 1-5 CA1-5 Save the Trees (STT) is...