For purposes of the Statement of Cash Flows, the organization considers all highly liquid investments with an initial maturity of three months or less to be cash equivalents.

Grants and other contributions of cash and other assets are reported as temporarily restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulation time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are classified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.

Contributions of donated non-cash assets are recorded at their fair values in the period received. Contributions of donated services that create or enhance non-financial assets or that require specialized skill, are provided by individuals possessing those skills, and would typically need to be purchased if nor provided by donation, are recorded at their fair values in the period received.

The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Investments are composed of mutual funds investing in debt instruments and securities carried at fair value.

All gains and losses arising from the sale, collection or other disposition of investments in the endowment are accounted for in unrestricted net assets.

Forum for Scriptural Christianity, Inc. is tax exempt under Section 501 (c)(3) of the Internal Revenue Code.

In 1996, the Organization elected to adopt Statement for Financial Accounting Standards (SFAS) No.117 (Financial Statements for Not-for-Profit Organizations). Under SFAS No.117 the Organization is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. In addition, the Organization is required to present a statement of cash flows. As permitted by this new statement, the Organization has discontinued its use of fund accounting.

The Organization also elected to adopt SFAS No.116, Accounting for Contributions Received and Contributions Made, effective January 1, 1996. In accordance with SFAS No.116, contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence or nature of any donor restrictions

Effective January 1, 1996, the Organization adopted SFAS No.124, Accounting for Certain Investments by Not-for-Profit Organization. Under SFAS No.124, investments in marketable securities with readily determinable fair values and all investments in debt securities are valued at their fair values in the statement of financial position. Unrealized gains and losses are included in the change in net assets. The adoption had no cumulative effect on net assets at the date of adoption. Dividends and interest are automatically reinvested into the securities portfolio.

Fixed assets are stated at cost. Depreciation is computed on the straight-line basis over the estimated useful lives of the respective assets, which range from 20 to 40 years for buildings and improvements and 5 to 10 years for equipment. Donated fixed assets are capitalized at their fair market values at date of receipt.