Contributions are generally recognized when received. However, pledges are recognized when the donor makes a promise to give to the Foundation that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets.
The preparation of financial statements in conformity with 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.
Marketable securities are composed of publicly traded U.S. Government obligations, corporate bonds and notes, and equity securities and are carried at fair value.
Marketable securities as of June 30, 2010 and 2009 are as follows:
| 2010 | 2009 | |||
| Cost | Fair Value | Cost | Fair Value | |
|---|---|---|---|---|
| U. S. Government obligations | $ 1,331,187 | $ 1,438,732 | $ 1,281,210 | $ 1,359,576 |
| Common and convertible securities | 2,430,896 | 3,031,237 | 1,993,657 | 2,640,901 |
| Bonds and notes | 894,010 | 946,654 | 814,162 | 843,128 |
| $ 4,656,093 | $ 5,416,623 | $ 4,089,029 | $ 4,843,605 | |
Notes payable as of June 30, 2009 consisted of a mortgage note payable. The mortgage was paid off in the year ended 2010.
38.