What is Contributed services (not-for-profits)?
In short
A not-for-profit recognizes contributed (volunteer) services as revenue and expense only if they create or enhance a nonfinancial asset, or require specialized skills, are provided by people with those skills and would otherwise have to be purchased.
Key takeaways
- Examples that qualify: a volunteer accountant, doctor or electrician providing professional services.
- General volunteer help, such as staffing a fundraising event, isn't recognized.
- Services that qualify are measured at fair value.
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?