What is Agency transactions (not-for-profits)?
In short
When a not-for-profit receives assets as an agent, trustee or intermediary to pass on to a beneficiary specified by the donor, with little discretion, it records a liability to the beneficiary rather than contribution revenue.
Key takeaways
- If the donor gives it variance power to redirect the assets, it is a contribution.
- If the organization and the beneficiary are financially interrelated, the beneficiary's interest is recognized differently.
- The specified beneficiary records the contribution.
Where it's tested
FAR: Not-for-Profit Accounting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A not-for-profit organization classifies net assets into how many categories?