What is Contributed nonfinancial assets (gifts in kind)?
In short
Not-for-profits present contributions of nonfinancial assets, such as donated food, equipment or use of facilities, as a separate line in the statement of activities, apart from contributions of cash and other financial assets.
Key takeaways
- They disclose the gifts by category, whether each was used or sold, any donor restrictions and how fair value was measured.
- Contributed services are recognized only if they create or enhance nonfinancial assets or require specialized skills.
- Gifts are generally measured at fair value when received.
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?