This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section
958-10-15.
The General Subsection of this Section establishes the pervasive scope for this Subtopic, with specific exceptions noted in the other Subsections of this Section.
The Contributions Received Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see paragraph
958-605-15-1, with specific exceptions noted below.
The guidance in the Contributions Received Subsections applies to the following transactions and activities:
- a
Contributions of cash and other assets, including promises to give, or a reduction, settlement, or cancellation of liabilities.
The guidance in the Contributions Received Subsections does not apply to the following transactions and activities:
- a
Transfers of assets that are in substance purchases of goods or services—exchange transactions in which each party receives and sacrifices commensurate value (in accordance with the guidance in paragraph 958-605-15-5A). However, if an entity voluntarily transfers assets to another or performs services for another in exchange for assets of substantially lower value and no unstated rights or privileges are involved, the contribution received that is inherent in that transaction is within the scope of the Contributions Received Subsections. - b
Transfers of assets in which the reporting entity acts as an agent, trustee, or intermediary, rather than as a donor or donee (see the Transfers of Assets to a Not-for-Profit Entity or Charitable Trust That Raises or Holds Contributions for Others Subsections of this Subtopic). - c
Tax exemptions, tax incentives, or tax abatements.
- d
Transfers of assets from government entities to business entities.
- e
Transfers of assets (typically from a government entity) that are part of an existing exchange transaction between a recipient and an identified customer. Some examples include payments under Medicare and Medicaid programs, provisions of health care or education services by a government for its employees, and Pell Grants or similar state or local government tuition assistance programs. In those instances, an entity shall apply the applicable guidance (for example, Topic 606 on revenue from contracts with customers) to the underlying transaction with the customer, and the payments from the third parties would be payments on behalf of those customers.
(P) December 16, 2027; (N) December 16, 2028
818-10-65-1The guidance in the Contributions Received Subsections does not apply to the following transactions and activities:
- a
Transfers of assets that are in substance purchases of goods or services—exchange transactions in which each party receives and sacrifices commensurate value (in accordance with the guidance in paragraph 958-605-15-5A). However, if an entity voluntarily transfers assets to another or performs services for another in exchange for assets of substantially lower value and no unstated rights or privileges are involved, the contribution received that is inherent in that transaction is within the scope of the Contributions Received Subsections. - b
Transfers of assets in which the reporting entity acts as an agent, trustee, or intermediary, rather than as a donor or donee (see the Transfers of Assets to a Not-for-Profit Entity or Charitable Trust That Raises or Holds Contributions for Others Subsections of this Subtopic). - c
Tax exemptions, tax incentives, or tax abatements.
- d
Transfers of assets from government entities to business entities.
- e
Transfers of assets (typically from a government entity) that are part of an existing exchange transaction between a recipient and an identified customer. Some examples include payments under Medicare and Medicaid programs, provisions of health care or education services by a government for its employees, and Pell Grants or similar state or local government tuition assistance programs. In those instances, an entity shall apply the applicable guidance (for example, Topic 606 on revenue from contracts with customers) to the underlying transaction with the customer, and the payments from the third parties would be payments on behalf of those customers. - f
Transfers of environmental credits received from a regulator or its designee(s). Subtopic 818-20 provides accounting guidance for environmental credits.
(P) December 16, 2028; (N) December 16, 2029
832-10-65-2The guidance in the Contributions Received Subsections does not apply to the following transactions and activities:
- a
Transfers of assets that are in substance purchases of goods or services—exchange transactions in which each party receives and sacrifices commensurate value (in accordance with the guidance in paragraph 958-605-15-5A). However, if an entity voluntarily transfers assets to another or performs services for another in exchange for assets of substantially lower value and no unstated rights or privileges are involved, the contribution received that is inherent in that transaction is within the scope of the Contributions Received Subsections. - b
Transfers of assets in which the reporting entity acts as an agent, trustee, or intermediary, rather than as a donor or donee (see the Transfers of Assets to a Not-for-Profit Entity or Charitable Trust That Raises or Holds Contributions for Others Subsections of this Subtopic). - c
Tax exemptions, tax incentives, or tax abatements.
- d
Transfers of assets from government entities to business entities. Topic 832 provides accounting guidance for government grants received by business entities. - e
Transfers of assets (typically from a government entity) that are part of an existing exchange transaction between a recipient and an identified customer. Some examples include payments under Medicare and Medicaid programs, provisions of health care or education services by a government for its employees, and Pell Grants or similar state or local government tuition assistance programs. In those instances, an entity shall apply the applicable guidance (for example, Topic 606 on revenue from contracts with customers) to the underlying transaction with the customer, and the payments from the third parties would be payments on behalf of those customers.
The Contributions Received Subsections also use terms such as gift and donation to refer to a contribution; however, they generally avoid terms such as awards, grants, sponsorships, and appropriations that often are more broadly used to refer not only to contributions but also to assets transferred in exchange transactions in which the grantor, sponsor, or appropriator expects to receive commensurate value.
Contribution revenue within the scope of this Subtopic can be presented in the financial statements of an entity using different terms (for example, gift, grant, donation, or other terms). While some of those terms are generally not used in this guidance, the term used in the presentation of financial statements to label revenue that is accounted for within the scope of this Subtopic is not a factor in determining whether an agreement is within the scope of this Subtopic.
The Transfers of Assets to a Not-for-Profit Entity or Charitable Trust that Raises or Holds Contributions for Others Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see paragraph
958-605-15-1, with specific exceptions noted below.
The guidance in the Transfer of Assets to a Not-for-Profit Entity or Charitable Trust that Raises or Holds Contributions for Others Subsections does not apply to the following entities:
- a
A trustee holding assets on behalf of a specified beneficiary (but paragraphs 958-605-25-29 and 958-605-25-31 establish standards for the beneficiary's reporting of its rights to trust assets—its beneficial interest in the charitable trust).
The guidance in the Transfers of Assets to a Not-for-Profit Entity or Charitable Trust that Raises or Holds Contributions for Others Subsections applies to the following transactions and activities:
- a
Transactions in which an entity—the donor—makes a contribution by transferring assets to an NFP or charitable trust—the recipient entity—that accepts the assets from the donor and agrees to use those assets on behalf of or transfer those assets, the return on investment of those assets, or both to an unaffiliated entity—the beneficiary—that is specified by the donor. (An unaffiliated beneficiary is a beneficiary other than the donor or its affiliate.) - b
Transactions that take place in a similar manner to (a) but are not contributions for either of the following reasons:
- 1
The entity that transfers the assets to the recipient entity—the resource provider—is related to the beneficiary in a way that causes the transfer to be reciprocal.
- 2
Conditions imposed by the resource provider or the relationships between the parties make the transfer of assets to the recipient entity revocable or repayable.
If the transfer of assets is not a contribution or not yet a contribution, the Transfers of Assets to a Not-for-Profit Entity or Charitable Trust that Raises or Holds Contributions for Others Subsections use the term resource provider rather than the term donor to refer to the entity that transfers the assets to the recipient entity.