FASB Statement 136 Transfer of Assets to a Not-For-Profit Organization

question 61

Essay

FASB Statement 136 Transfer of Assets to a Not-for-Profit Organization or Charitable Trust that Raises or Holds Contributions for Others provides guidance on how intermediary recipient organizations should record receipt of resources held for others. Briefly describe the issue and how such transfers should be recorded.

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Definitions:

CEO

stands for Chief Executive Officer, the highest-ranking individual in a company or organization, responsible for making major corporate decisions.

Corneal Blindness

A condition where the cornea, the clear front surface of the eye, becomes opaquely damaged, leading to impaired vision or blindness.

Teach for America

A nonprofit organization in the United States focused on addressing educational inequity by recruiting and training teachers for schools in low-income communities.

At-Risk Youth

Individuals, typically under the age of 18, who are considered to be at a higher risk of facing adverse outcomes such as failing in school, substance abuse, or criminal activity due to their social, economic, or family circumstances.