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Reply To: Discussion with Gina McDonald for 8.15.23 Revenue Recognition Event

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…

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Reply To: Discussion with Gina McDonald for 8.15.23 Revenue Recognition Event

One more thing! If the years 3 and 4 payments come in after the work is finished, is the implication that these will go toward…

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Reply To: Discussion with Gina McDonald for 8.15.23 Revenue Recognition Event

FASB requires unconditional contributions to be recognized as revenue. Restrictions do not affect recognizing revenue and, if we are following GAAP, we must book restricted…

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Reply To: Discussion with Gina McDonald for 8.15.23 Revenue Recognition Event

We have a tourism grant that we are awarded for events specifically. Should we recognize the revenue when we are told it’s been approved or…

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Reply To: Discussion with Gina McDonald for 8.15.23 Revenue Recognition Event

Why isn’t the capital campaign revenue moved to unrestricted as construction costs are occurring and being paid? Is the delay to completion related to the…

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Reply To: Discussion with Gina McDonald for 8.15.23 Revenue Recognition Event

Does the need for a quarterly report qualify as a “condition” / barrier to fulfillment of the gift? Say I get a $100 grant x…

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Reply To: Discussion with Gina McDonald for 8.15.23 Revenue Recognition Event

Hi! In the first case, we would not discount the revenue related to the quarterly matching challenge. Pursuant to the “twist in the facts”, we…

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Reply To: Discussion with Gina McDonald for 8.15.23 Revenue Recognition Event

In Case Study #1: What if the $250k is also purpose restricted for the building to be used as a shelter? If it is not…

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Reply To: Discussion with Gina McDonald for 8.15.23 Revenue Recognition Event

Hi! We should record revenue right away when it becomes unconditional. So while we should not wait, we should use our best attempt to not…

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Reply To: Discussion with Gina McDonald for 8.15.23 Revenue Recognition Event

For Case Study 2: Can you tell us again what makes this a grant (contribution) rather than a contract (earned)?

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