Donated services should be considered revenue if the service creates or enhances a nonfinancial asset and requires a specialized skill which would have had to be purchased if not donated.

Question

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According to accounting standards, donated services should be considered revenue if they meet certain criteria, one of which is that they create or enhance a nonfinancial asset and require a specialized skill that would have had to be purchased if not donated. Therefore, if these criteria are met, donated services are considered as revenue in the financial statements.

Donated Services Should Be Considered Revenue If the Service Creates