Save the Trees (STT) is a not-for-profit organization whose mandate is to keep our cities green by

Question:

Save the Trees (STT) is a not-for-profit organization whose mandate is to keep our cities green by planting and looking after trees. STT is primarily funded by government grants and must comply with a significant number of criteria in order to obtain additional funds. One such requirement is that the entity prepare financial statements in accordance with GAAP.

Instructions

(a) Identify who the stakeholders are in this case and explain why they are stakeholders.

(b) Which GAAP should the entity follow and why?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...