Which of the following is NOT a GAAP year-end financial report requirement for community associations?

• A. Balance Sheet
• B. Statement of Income and Expense
• C. Statement of Changes in Members' Equity
• D. Schedule of Investments

Answer: (D)

Understanding how GAAP frames year-end financial reporting for community associations helps clarify why a Schedule of Investments isn’t required.

When a community association prepares year-end financial statements under GAAP, the essential reports are the Balance Sheet, which shows assets, liabilities, and members’ equity; the Statement of Income and Expense, which records all revenues and expenses for the period; and theStatement of Changes in Members’ Equity, which shows how the association’s net assets or equity have changed due to operations, capital contributions, reserve allocations, and distributions. These documents collectively capture what the association owns, owes, and how its financial position changed over the year.

The Schedule of Investments, while often useful for transparency and management oversight, is not a GAAP-mandated year-end financial report. Investments should be reflected within the Balance Sheet (as assets) and possibly discussed in the notes or disclosures, but there is no GAAP requirement to present a separate “Schedule of Investments” as a stand-alone year-end statement. So, the best answer is that the Schedule of Investments is not required by GAAP for year-end reporting.