[gina]

Hi! Typically dollars related to events are conditional upon the events taking place AND restricted to the purpose of the event. In that case, the conditions would prohibit recognizing revenue until the event takes place. Without seeing the grant award, that is a general response.

[gina]

Part #1 – FASB no longer permits (per ASU 2016-14) the release along the way. FASB requires releasing at the time the asset is placed in service.

Part #2 – the org raised $40K, so that will allow recognition of a $40K match (and takes care of the $25K prepayment and indicates a remaining pledge of $15K)

[gina]

Hi! In our experience, these kinds of use restrictions have a time frame as well (something similar to “use as a shelter for 25 years). In these cases, we do see those dollars maintained as restricted and not released until the use period ends.

[gina]

In case #2 – The government is the resource provider, but is not a customer buying services for themselves. They are funding services that will be provided to program participants. That is a key differentiator for contributed revenue – a resource provider who is not the direct service recipient.

[gina]

Hi! A report alone is not enough to create a condition. FASB indicates that a report alone may be considered an administrative requirement and not a condition. HOWEVER – think about the substance of the report and what it is asking for. In our case #1, the donor asked for a report showing the match each quarter so they could fund it. Although there was a report, it was really the act of raisin the match and informing the donor that satisfies the condition, not simply the act of reporting.