Extract
SFAS No. 136.
CLEARS UP THE CONFUSION FOR ASSET TRANSFERS TO NPOS
Issued in 1993, SFAS No. 116, Accounting for Contributions Received and Contributions Made, established accounting rules for donors and donees. However, SFAS No. 116 specifically excluded from its coverage asset transfers to agents, trustees, or intermediaries. Thus, an accounting void existed for these third-party not-for-profit organizations (NPOs) that solicit or collect contributions on the behalf of others, and confusion reigned concerning what these entities should report as revenue, income, assets, and liabilities. Responding to this confusion, FASB issued in June 1999 SFAS No. 136, Transfers of Assets to a NPO or Charita...See the full content of this document
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