Private colleges and universities record contributed services as revenue if the services create or enhance nonfinancial assets or require specialized skills, are provided by an individual possessing those skills, and would typically be purchased if not provided by donation.

Question

Quizplus · Accepted Answer

Contributed services are recognized as revenue for a private not-for-profit organization only under specific circumstances; if the service 1) creates or enhances nonfinancial assets or 2) requires specialized skills, is provided by someone possessing those skills, and typically would be purchased if not provided by donation.

Private Colleges and Universities Record Contributed Services as Revenue If