Under the deferral method, how should contributions received in the current year, but restricted for operating expenses for one or more future periods, be reported in the current year?

Question

Quizplus · Accepted Answer

Contributions received for future periods should be recorded as deferred revenue on the balance sheet and released as revenue in the appropriate future periods when the restriction is lifted. This ensures that revenue is recognized in the correct period and prevents overstatement of revenue in the current period.

Under the Deferral Method, How Should Contributions Received in the Current