Accounting by recipients for non-reciprocal tranfers, excluding contributions by owners
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Accounting by recipients for non-reciprocal tranfers, excluding contributions by owners their definition, recognition and measurement by Mark Westwood

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Published by Financial Accounting Standards Board, Financial Accounting Foundation in Norwalk, CT .
Written in English


  • Income accounting,
  • Gifts -- Accounting,
  • Assets (Accounting)

Book details:

Edition Notes

StatementMark Westwood, April Mackenzie, principal authors ; Australian Accounting Standards Board ... [et al.]
SeriesFinancial accounting series -- no. 204-A, G4+1 special reports, Special report, Special report (Financial Accounting Standards Board)
ContributionsMackenzie, April, Australian Accounting Standards Board
The Physical Object
Paginationxxii, 70 p. :
Number of Pages70
ID Numbers
Open LibraryOL15269733M

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Some believe that accounting for nonreciprocal transfers of nonmonetary assets to owners should be based on the carrying amount of the nonmonetary assets transferred because only that method is consistent with the historical cost basis of accounting.   ASU also specifically asserts, however, that transfers of assets that are part of an existing exchange between a recipient and an identified customer are generally not contributions. In evaluating the agreements, Omega determines that it is providing services to specified individuals who are receiving a benefit of commensurate value.   Accounting for Contributions, Pledges, or cancellation of its liabilities in a voluntary non-reciprocal transfer by another entity acting other than as an owner Contribution Concepts (Cont.) Examples of that is, whether a recipient non-profit has given up: Assets - Rights - Privileges, that areFile Size: KB.   Revenue Recognition for Contributions. When a not-for-profit entity receives a contribution, it should recognize revenue when the contribution is received, and measure the amount of revenue at the fair value of the contribution. If there are restrictions imposed by the donor, this impacts how the contribution is classified, as either a change in.

IFRIC , 3, A distribution is a non-reciprocal transfer of assets from an entity to its owners, commonly referred BC4, 5 to as a dividend. There is no restriction placed on the term “distribution” in the interpretation other than it must be non-reciprocal. Neither the reason for the transfer of . 1. This Statement establishes standards of financial accounting and reporting for contributions 1 received and contributions made. Accounting for contributions is an issue primarily for not-for-profit organizations because contributions are a significant source of revenues for many of those organizations. However, this Statement applies to all. If the transfer is ‘non-reciprocal’, meaning that it is a transfer in which the entity receives assets or services or has liabilities extinguished without directly giving approximately equal value in exchange to the other party or parties to the transfer, this would be accounted for as a ‘contribution’ under AASB (where income is recognised when control or the right to receive a contribution is obtained). A contribution occurs when an entity receives an asset, including the right to receive cash or other forms of asset without directly giving approximately equal value to the other party or parties to the transfer; that is, when there is a non-reciprocal transfer. Contributions would, for example, include donated assets.

  Accounting by recipients for non-reciprocal transfers, excluding contributions by owners: their definition, recognition and measurement, Financial Accounting Standards Board.   Australian Accounting Standard AASB Contributions (as amended) is set out in paragraphs 1 – 15 and the Appendix. All the paragraphs have equal authority. when there is a non‑reciprocal transfer. Contributions would, for example, include donated assets. Contributions that are income exclude contributions by owners. On J , the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. , Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. This standard is intended to address questions stemming from FASB ASU No. , Revenue from Contracts with Customers, regarding its implications on the grants . Recipient NFP asserts that it is soliciting the asset as a contribution. Recipient NFP asserts that it is seeking resources in exchange for specified benefits. Resource provider's expressed intent about the purpose of the asset to be provided by recipient NFP Resource provider asserts that it is making a donation to support the NFP's programs.