In accordance with ASC 958,contributions of services are recognized as increases in unrestricted net assets by a private,not for profit entity if which of the following criteria are satisfied?
I.The services received create or enhance nonfinancial assets.
II.The services require specialized skills,are provided by individuals possessing those skills,and would typically need to be purchased if not provided by donations.
III.The services will be performed within the current fiscal year.
A) I or II.
B) I or III.
C) II or III.
D) I, II, III.

Question

Quizplus · Accepted Answer

According to ASC 958, contributions of services are recognized as increases in unrestricted net assets if they satisfy either criterion I (create or enhance nonfinancial assets) or criterion II (require specialized skills and would typically need to be purchased). Criterion III (services performed within the current fiscal year) is not a condition for recognizing contributions of services. Therefore, the correct answer is A) I or II.

In Accordance with ASC 958,contributions of Services Are Recognized as Increases