A contribution that is restricted by the donor to be held in perpetuity and for which the investment income can be spent at the discretion of a nongovernmental,not-for-profit hospital's governing board,will be reported as an increase to

Question

Quizplus · Accepted Answer

A contribution that is restricted by the donor to be held in perpetuity is reported as an increase to permanently restricted net assets, as the principal amount is permanently restricted and only the investment income can be spent. The fact that the spending is at the discretion of the hospital's governing board is irrelevant to the classification of the fund.

A Contribution That Is Restricted by the Donor to Be