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 an NPO would report "contributions" for the amount released from restrictions.

Question

Quizplus · Accepted Answer

The cost of the constructed building would be reported in the statement of activities as "net assets released from temporary restrictions," rather than again as "contributions." If it is the NPO's policy to consider all building and equipment acquisitions as temporarily restricted, then the restriction will be released over time as depreciation is recorded.

Contributions Received in a Prior Period and Restricted by the Donor