In accordance with FASB 116,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 FASB 116, contributions of services are recognized as increases in unrestricted net assets by a private, not-for-profit entity if either criterion I (the services received create or enhance nonfinancial assets) or criterion 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) are satisfied. Criterion III (the services will be performed within the current fiscal year) is not a necessary condition for the recognition of contributions of services. Therefore, the correct answer is A (I or II).

In Accordance with FASB 116,contributions of Services Are Recognized as Increases