# LCMS Convention Workbook_St. Louis Missouri_1973_S372
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

366 STEWARDSHIP AND FINANCE
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: , oe a NOTES TO FINANCIAL STATEMENTS
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~ +&£ Bac S ne = The Lutheran Church — Missouri Synod
= Ziak oO a S
= E Z| 25 L LE. January 31, 1973
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eo E z oes row a ta Note A — Significant Accounting Policies
Del _ | al s :
he Eas om S S Fund Groupings
g HP ss a oo is . . ete sas
s Lp a om é a aS The financial transactions and assets and Habilities of The Lu-
fa) g) 7 = theran Church — Missouri Synod are accounted for using the prin-
avy ae le ciples of fund accounting. The following four fund &8roupings are
2 cx BAGaSIR oA used:
* om i Reacrn 'o ih
25nc oe ~ SACRA OF 1m Current Funds — Used to account for the budgeted operation
BUSS Be $ Sr SNS N br of Synod and record transactions in specific and agency funds.
Ea7R NT Ss Serv a a ; -
on SI - ~ OS fal Loan Funds — Used to record funds available, loan activity
~ ad ee and site acquisition for church extension.
mA ” Sansa 0 ' 0
ul 2! ers 3 Ssyee 3 s Property Funds — Used to record funds employed for cap-
v Oo Sec ms Neoaoer! os lo ital expenditure purposes and to reflect investment in Synod-
=] - ses boa Ceore | in owned property and related entities.
2] 9! e ic 1B Trust Funds — Used to record funds for which Synod is
g 2) Bere “ S=ass S o acting as trustee.
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na a 5 Se as 6 x¥gss Iwo ole Investment in Securities
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Qa al é oe id fearrs 12 18 Investments are recorded at cost. Bond premiums and discounts
z c ns a S- as a 4 are not amortized as the effect is not significant,
ool me EES is n> gt: ~ OF Land, Buildings, and Equipment
> é| +o> = ~ wlS ta & , vat . :
A & % % ~ iS a s _ Investment in land, buildings, and equipment is stated at cost
5 > be bt 3 with the excevtion of deaf mission vroperties which are stated at
2 _ ~ ' _ appraised values established in 1961 and subsequent additions at
eH =o ‘= & cost.
35 2 (4g i i i
| o EN oo is é The cost of furniture. fixtures. and equipment is charged to ex-
£7 9) 5 = = 3 iad i g < pense rather than capitalizing such items. This accounting treatment
iy 2 Sim 3; a = has not had a significant effect on the financial statements.
Zn 3 zI -c sy The Synod follows the Dolicy of recording no depreciation on the
< A s g wees ;2 § properties.
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age gost 3 s Investments in capital assets of foreign mission fields are not
<=) | &,7°% eg recorded.
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Zz ' aw oon wn a 3 © Investment in Educational Properties and Other Entities
5 = - w= 6 NN 4A (r=) : . .
£ ne cu = om eos a Investments in college and seminary properties and related notes
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5 SONG Ne oy Sos > and loans payable are shown at the amounts as recorded on the
Zz 5 = ese on & a - é books of the various colleges and seminaries at Dec. 31.
al GRATE Sop = a is .
ne 67 g ~ 2 Investment in other related entities are recorded generally at the
ny) 8 ™ ~ -™ ~ underlying net asset values as of Jan. 31, except for Concordia Pub-
ms 2 en haan ¢ .
ce) | b$-4 5 & 5 3 3 lishing House which is recorded as of its fiscal year end, April 30.
ze AS = a No “ .
< 3 2 oa ok é $8 eS g Income Recognition
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Fs) © o! Fse oO ~ of “wo 8 Income is recognized in the general current fund as unrestricted
ws a S| a ~ 3 a contributions are received from Districts, individuals, and agencies.
Bs » aS og . :
° Ez oe yo nat /G 9 Receipts for specific purposes are recorded in specific funds until
mw -|9 “Pgs aS * § used for the purpose designated. If the use is covered by a budgeted
z Ss} >! & y cs be io os expenditure the amount is transferred from specific funds and rec-
aI @| SIE oe oI io 8 ognized as income in the current funds as expended.
c| 3) omed ie 6g
= i £0 * ~ “ § Amounts received as unrestricted bequests are recorded as cur-
| 5 Pe ol b ra) m1 tan rent fund income or additions to the capital projects funds in ac-
a vi £2 SS ay Ke x is 7 cordance with resolutions of the Board of Directors.
e: Sat : : ens _
Ex @ S65 es $§ € s
7) gl egrs e o = = Note B— Disposal of Commerce Building
5 ue = oo nN CY stage :
& es 2 : a On Jan. 31, 1973, the Commerce Building was sold with the pur-
2 id ~ OO AN i” chaser assuming the balance ($862,084) of a first mortgage note
a Be & act bd ae S Payable and issuing to Synod a 6!°: promissory note of $434,815
Bas = BR NG = due in equal installments from Feb. 1, 1976, to Jan. 1, 1993.
Sac a a o oN ms ;
2¢¥S5255 5 6 ¢ =s i & The charge to operations of $380,431 includes the write-off of
(feos PG aT! a accumulated operating losses of $355,047 that had previously been
Ot , ~ oS deferred
i bs - 3 eferred.
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5 _ & Note C — Adjustments of Pension Investments
x = ‘» 4 & cel Under the terms of the Pastors and Teachers Pension Plan, the
= 2: S on) EE - participants’ accounts are increased (or decreased) by 50% of the
“ “eas S nfo Ag S change in unrealized appreciation of equity investments. No adjust-
S % rg Cz FS seZ 2 ect i ment is made for changes in unrealized appreciation of fixed income
SLs $s Te VOB: Eco = inv
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