A private sector,not-for-profit hospital received a pledge of $150,000 in 2013 to be used for a building to be constructed in 2014 but contingent on the hospital being able to raise an equivalent amount from other donors.As of the end of 2013,half the amount had been raised from other donors.In 2014,the hospital raised the amount from other donors.The donor gave the $150,000 to the hospital in 2014 and the building was completed in 2014.In which year should the hospital recognize the $150,000 from the pledge?

Question

Quizplus · Accepted Answer

The pledge is contingent upon raising an equivalent amount from other donors. Since the condition was met in 2014, the hospital should recognize the $150,000 in 2014 when the condition was satisfied and the funds were received.

A Private Sector,not-For-Profit Hospital Received a Pledge of $150,000 in 2013