When should unconditional pledges be recorded as revenue?

Question

Quizplus · Accepted Answer

Unconditional pledges should be recorded as revenue when the pledge is made, typically in the period in which the pledge is promised. This is because an unconditional pledge represents a promise to make a gift, and therefore it meets the criteria for revenue recognition. The actual receipt of the cash may occur in a different period, but the recognition of the revenue is based on the unconditional promise.

When Should Unconditional Pledges Be Recorded as Revenue