Not-for-Profit Entities F39-08b

What are the special recognition rules that apply when revenue is to be received over multiple fiscal periods?

• Recognize revenue at the net present value of the contribution
• The portion of the pledge that is to be received in subsequent fiscal periods is considered Temporarily Restricted.
• The net present value of the pledge is recalculated at the end of the period
• When the future payments are received, the assets are reclassified to unrestricted net assets, assuming that there are no other restrictions on how the money may be spent, but revenue is not recognized.