SAE Annual Report 2012 - 38

SAE INTERNATIONAL AND SUBSIDIARIES
Notes to the Consolidated Financial Statements (Continued)
Note 1 - Summary of Significant Accounting Policies (Continued)
C. Basis of Accounting
of accounting in accordance with accounting principles generally accepted in the United
States of America.
those classes are
D.
Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make estimates
and assumptions. These estimates and assumptions affect the reported amounts of assets
and liabilities, and the disclosure of contingent assets and liabilities at the date of the
financial statements, and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
E. Cash and Cash Equivalents
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.
The Organization's cash balances are allocated to numerous banking institutions. From
time to time, the balance may be in excess of the Federal Deposit Insurance Corporation
(FDIC) insurance limit.
F. Accounts Receivable
Accounts receivable are stated at the amount management expects to collect from
balances outstanding at year end. Management provides for probable uncollectible amounts
through a charge to earnings and a credit to a valuation allowance based on its assessment
of the current status of individual accounts.
management has used reasonable collection efforts is written off through a charge to the
valuation allowance and a credit to trade accounts receivable.
Any balance that is still outstanding after
The allowance for
uncollectible accounts was approximately $273,000 at December 31, 2012 and $236,000
at December 31, 2011.
G. Pledges Receivable
38
Unconditional promises to give are recognized as revenues or gains in the period
received as assets, decreases of liabilities, or expenses depending on the form of the
benefits received. Conditional promises to give are recognized when the conditions on
which they depend are substantially met.
Page 12
The accompanying consolidated financial statements are prepared on the accrual basis
Net asset classifications and changes in each of
reported in the financial statements, and detailed information regarding the purpose of
temporarily and permanently restricted net assets are disclosed in Note 9.

SAE Annual Report 2012

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