Contributions received in a prior period and restricted by the donor for construction of a building were reported as increases to "temporarily restricted net assets" in the period received.When the building is constructed in a subsequent period a not-for-profit would report "contributions" for the amount released from restrictions.

Question

Quizplus · Accepted Answer

When the building is constructed, the not-for-profit would report a reclassification from "temporarily restricted net assets" to "unrestricted net assets," not as new "contributions."

Contributions Received in a Prior Period and Restricted by the Donor