A nonprofit organization receives a pledge from a donor in fiscal 2018. The terms of the pledge are such that the organization will receive a large cash contribution in fiscal 2022. At what value should the pledge be reported in the organization's 2018 statement of financial position?

Question

Quizplus · Accepted Answer

Consistent with the requirement for measuring donations at fair value, the FASB requires that promises to give cash in the future (that is, more than 1 year after the statement of net position date) be discounted to present value.

A Nonprofit Organization Receives a Pledge from a Donor in Fiscal