According to the FASB Codification,which of the following is a condition that must be met for contributed services to a not-for-profit organization (NFP) to be recorded as both a contribution and as an expense?
A) The service creates or enhances nonfinancial assets, such as a carpenter renovating a building.
B) The service requires a specialized skill and is provided by someone who possesses the specialized skill, such as a lawyer preparing contracts.
C) The service supplements the management function, such as an auditor preparing a program audit, which is not normally done.
D) All of the above must be met for contributed services to be recognized as a contribution and an expense.
Correct Answer:
Verified
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