Under FAS 116, repairs made to a building on a volunteer basis by a plumber would not be recognized in the financial statements.

Question

Quizplus · Accepted Answer

Under FAS 116 (now part of ASC 958), contributions of services, including skilled labor such as plumbing repairs made by a volunteer, should be recognized in the financial statements if the services (a) create or enhance nonfinancial assets or (b) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation.

Under FAS 116, Repairs Made to a Building on a Volunteer