2021-09-22 OMA Agenda - Board of Trustees

OBESITY MEDICINE ASSOCIATION Notes To Consolidated Financial Statements (Continued)

Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, gains, losses and other changes in net assets during the reporting period. Actual results could differ from those estimates. Income Taxes The Association is exempt from federal income tax under Section 501(c)(6) of the Internal Revenue Code (IRC). However, income from certain activities not directly related to the Association’s tax-exempt purpose is subject to taxation as unrelated business income. Taxes on unrelated taxable business activities in 2020 are not material. The Foundation is exempt from federal income tax under Section 501(c)(3) of IRC. However, income from certain activities not directly related to the Foundation’s tax-exempt purpose is subject to taxation as unrelated business income. The Foundation did not incur taxes on unrelated taxable business activities in 2020. Advertising Expense The Organizations expense advertising costs as they are incurred. Advertising expenses consist primarily of marketing expenses for the educational seminars. Total advertising expense of $25,239 in 2020 is included in education and seminars expense. Functional Allocation Of Expenses The costs of supporting the various programs and other activities have been summarized on a functional basis in the accompanying consolidated financial statements. Certain other costs that benefit multiple functional areas have been allocated across programs and supporting services as determined by management on an equitable basis, based on estimates of time and effort spent on the related functional area.

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