B is corrent. According to the AICPA Audit and Accounting Guide, Health Care Organizations, unrealized gains and losses from other than trading securities, which are not restricted by donors, are reported after the performance indicator on the statement of operations. Therefore, the unrealized loss in item I is reported on the statement of operations, but it is not included in the amount reported for revenue and gains over expenses and losses, the performance indicator. The donor contribution which cannot be used until next year is not reported on the statement of operations. The contribution represents an increase in temporarily restricted net assets and is reported on the statement of changes in net assets.
A is incorrect. Unrealized gains and losses from other than trading securities, which are not restricted by donors, are reported after the performance indicator on the statement of operations. Therefore, the unrealized loss in item I is reported on the statement of operations, but it is not included in the amount reported for revenue and gains over expenses and losses, the performance indicator.
C is incorrect. The donor contribution which cannot be used until next year is not reported on the statement of operations. The contribution represents an increase in temporarily restricted net assets and is reported on the statement of changes in net assets.
D is incorrect because the donor contribution which cannot be used until next year is not reported on the statement of operations, and unrealized gains and losses from other than trading securities, which are not restricted by donors, are reported after the performance indicator on the statement of operations.
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