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Excerpt from ASC 958-605-25-5
Contributed tangible property worth accepting generally possesses the common characteristic of all assets—future economic benefit or service potential. The future economic benefit or service potential of a tangible item usually can be obtained by exchanging it for cash or by using it to produce goods or services.
Excerpt from ASC 958-605-30-11
Gifts in kind that can be used or sold shall be measured at fair value.
Excerpt from ASC 958-605-30-11
In determining fair value, entities should consider the quality and quantity of the gifts, as well as any applicable discounts that would have been received by the entity, including discounts based on that quantity if the assets had been acquired in exchange transactions.
If the fair value of an asset transferred differs from its carrying amount, a gain or loss shall be recognized on the disposition of the asset (see paragraphs 845-10-30-1 through 30-2).
Dr. Contribution expense
|
$300,000
|
|
Cr. PP&E
|
$100,000
|
|
Cr. Gain on disposition of PP&E
|
$200,000
|
Dr. Contribution expense
|
$300,000
|
|
Cr. Cash
|
$300,000
|
Dr. Cash
|
$300,000
|
|
Cr. PP&E
|
$100,000
|
|
Cr. Gain on disposition of PP&E
|
$200,000
|
Dr. PP&E
|
$300,000
|
|
Cr. Contribution revenue
|
$300,000
|
Excerpt from ASC 958-605-50-1A
Category of donation |
Revenue recognized in 20X3 |
Revenue recognized in 20X2 |
Utilization in programs/activities |
Donor restrictions |
Fair value techniques and inputs |
|
Vehicle
|
$12,000
|
$8,465
|
N/A – Monetized
|
No donor restrictions
|
Donated vehicles are valued based on the actual cash proceeds received upon sale of the vehicle, as it is NFP’s policy to sell all vehicles upon receipt.
|
|
Pharma-ceuticals
|
$51,432
|
$38,416
|
Global AIDS
|
Restricted to use in Africa
|
AIDS medication donated for the use of treatment exclusively within Africa, was valued using the Federal Upper Limit based on the weighted average of the most recently reported monthly Average Manufacturer Prices (AMP) that approximate the wholesale price of the respective medication within the United States (the most advantageous market).
|
|
Pharma-ceuticals
|
$16,445
|
$2,340
|
International Health Services in Ghana
|
No donor restrictions
|
The majority of this category consists of malaria prevention pharmaceuticals. FDA restrictions prohibit the use of this medication within the United States. As such, the pharmaceuticals were valued using reliable third-party wholesale prices in markets in which the products are approved for sale.
|
|
Software licenses
|
$123,250
|
$0
|
All Programs / Activities, primarily payroll and marketing
|
No donor restrictions
|
NFP estimated the fair value of the respective software licenses by obtaining the selling price of these licenses to entities of similar size and complexity.
|
Category of donation |
Revenue recognized in 20X3 |
Revenue recognized in 20X2 |
|
Vehicle |
$12,000 |
$8,465 |
|
Pharmaceuticals – Donor restricted |
$51,432 |
$38,416 |
|
Pharmaceuticals |
$16,445 |
$2,340 |
|
Software license |
$123,250 |
$0 |
PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
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