Chapter 11 - Solution Manual

Not for profit entity an entity that possesses the

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(donee) but is neither an agent or trustee nor a donee and donor. Not-for-Profit Entity An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: a. Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return b. Operating purposes other than to provide goods or services at a profit c. Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: a. All investor-owned entities b. Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans. Promise to Give A written or oral agreement to contribute cash or other assets to another entity. A promise carries rights and obligations—the recipient of a promise to give has a right to expect that the promised assets will be transferred in the future, and the maker has a social and moral obligation, and generally a legal obligation, to make the promised transfer. A promise to give may be either conditional or unconditional. Unconditional Promise to Give A promise to give that depends only on passage of time or demand by the promisee for performance. 958-405-25 Recognition General Note for Fair Value Option : Some of the items subject to the guidance in this Subtopic may qualify for application of the Fair Value Option Subsections of Subtopic 825-10. Those Subsections (see paragraph 825-10-05-5) address circumstances in which entities may choose, at specified election dates, to measure eligible items at fair value (the fair value option). See Section 825-10-15 for guidance on the scope of the Fair Value Option Subsections of the Financial Instruments Topic. General 958-405-25-1 For recognition guidance on liabilities that result from transfers of donated assets to intermediaries and agents , see paragraphs 958-605-25-23 through 25-24.
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226 958-405-25-2 Deferred revenues that relate to exchange transactions (advance payments for services not yet rendered or goods not delivered) are reported as liabilities. 958-405-25-3 A not-for-profit entity (NFP) that is a social or country club may issue membership interests, such as capital shares. If those interests are wholly or partially refundable when the member dies, moves away, resigns his or her membership, or at a fixed date, Subtopic 480-10 provides guidance. 958-405-30 Initial Measurement General 958-405-30-1 For initial measurement guidance on liabilities that result from transfers of donated assets to intermediaries and agents , see paragraph 958-605-30-13. 958-405-30-2 For initial measurement guidance on liabilities that result from making promises to give , see paragraphs 720-25-30-1 through 30-2.
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