[Mr.NiceWatch]

Hey guys.

Fairly new member here.

I was reviewing F9 (NFP accounting) today and noticed a difference between the Becker flashcards and the 2012 FAR book. In the flashcards, it says that revenue from unconditional promises should be recorded at fair value when received. In the book, it says that revenue for unconditional promises should be recognized when promise is made. Am I missing something here or is this an actual error?

Thanks.

Journey begins in July 2012.

FAR - 87 (8/7/2012)
REG - 89 (11/19/2012)
AUD - 95 (1/17/2013)
BEC - 81 (2/26/2013)

[New Dad]

Mr. Nice Watch – First of all, I wear an Omega Seamaster – what is on your wrist?

Secondly, it is my understanding that pledges (unconditional promises), you debit pledges receivable at present value. You credit an allowance for uncollectable pledges (it usually says based on experience, x% will not be honored) credit revenues of unrestricted for what is current (given now or by year end) and credit the remainder in temporarily restircted because they are restricted by time e.g. will be give next year.

F -7/11/2012 (77)
A - 8/30/2012 (68), 10/4/2012 (78)
R - 11/21/2012 (84)
B - 01/05/2013 (85)

Done!!
Used Roger CPA Review with Wiley Online Test Bank and Ninja Audio

[Author]

Replies