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strojnjashka [21]
3 years ago
12

A local philanthropist made an unconditional pledge to donate $100,000 to a not-for-profit organization to be paid in five equal

installments of $20,000 beginning in two years. Under FASB standards the pledge would be recognized as:
Social Studies
1 answer:
lorasvet [3.4K]3 years ago
6 0

Answer:

“With donor restriction”

Explanation:

The Financial Accounting Standards Board (FASB) is a financial regulatory body that produces a set of rules for accounting in Not-for-profit organisations. Its rule clearly stipulates that when a donor gives an organization some sort of gift or grant to be used <em>at a future date</em> or specifically for intended purpose, such assets would be categorized as 'Net Assets With Donor Restriction'

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