According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,contributed services should be recognized when the services create or enhance nonfinancial assets or require specialized skills,are provided by an individual possessing those skills,and would typically be purchased if not provided by donation.

Question

Quizplus · Accepted Answer

This is in accordance with FASB Statement No. 116, Accounting for Contributions Received and Contributions Made, which provides guidance on accounting for nonreciprocal transactions, including contributions of services.

According to the Rules for Accounting for Colleges and Universities