Revenue Recognition

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Question

When are contributed services recognized by an NFP?

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Answer

Only if they create assets or require specialized skills.

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Question

Why are nonrefundable upfront fees usually not separate performance obligations?

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Answer

They are recognized over the period of benefit.

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Question

What tells you to use an output method instead of an input method?

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Answer

When milestones or units delivered best measure progress.

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Question

What makes a performance obligation a distinct good or service?

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Answer

It is separately identifiable and capable of being distinct.

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