Under FAS 116, the interest element in a present-value measurement is subsequently recognized as contribution income-not interest income.

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Under FAS 116 (now codified in ASC 958-605), the interest element in a present-value measurement of a contribution is recognized as an increase in the contribution receivable and contribution income, not as interest income, as the amount is collected over time.

Under FAS 116, the Interest Element in a Present-Value Measurement