What Criteria Did the FASB Establish for Not-For-Profit Entities to Use

question 31

Essay

What criteria did the FASB establish for not-for-profit entities to use in determining if a contribution is conditional?

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Definitions:

Estimable Loss

A projected financial loss that can be anticipated and measured with reasonable accuracy.

Financial Statement Disclosure

The provision of information in a company's financial statements beyond the basic financial numbers, aimed at giving a complete understanding of the company's financial health.

Lawsuit Loss

Financial loss recognized by a company due to legal judgments or settlements in lawsuits.

Reasonably Possible Loss

A loss that is not assured but has a good chance of occurring, requiring disclosure in financial statements if quantifiable and material.