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Gold Development Inc GDI a newly incorporated not for

profit organization with #101

Gold Development Inc. (GDI), a newly incorporated not-for-profit organization with a December
31 year end, will offer low-rent housing services for people with low income.GDI reports to
Logimex, a government agency that requires audited annual financial statements to be filed.
Michel Bilodeau, GDI's project originator and administrator, is not familiar with the preparation of
financial statements.GDI received a non-repayable grant from Logimex in February 2013 for the
construction of an eight-storey apartment building. Construction began in April 2013. Residents
will start to move into the apartment building between October and December 2013, although it
will not be entirely completed until the end of December 2013. By December 2013, all the
apartments should be rented.GDI receives donations from companies and individuals in the
region. It has received pledges from large, well known companies for the next five years, and
pledges from individuals for the current and next year.Pledge amounts have been set out in
writing on forms signed by the donors. For a nominal salary, Mr. Bilodeau manages the
organization with the help of his wife and the local priest, both of whom are
volunteers.Required(a) Explain to Mr. Bilodeau what is meant by "reporting on a restricted fund
accounting basis."(b) Advise Mr. Bilodeau on how GDI will account for the above facts if GDI
decides to report on a restricted fund accounting basis.View Solution:
Gold Development Inc GDI a newly incorporated not for profit organization with


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