Section PS 4210 - Contributions — revenue recognition
Effective date: |
January 1, 2012 |
Published by the PSAB: |
December 2010 |
Overview
This Section establishes standards for the recognition, measurement, presentation and disclosure of contributions, and related investment income, received by not-for-profit organizations.
A contribution is a non-reciprocal transfer to a not-for-profit organization of cash or other assets or a non-reciprocal settlement or cancellation of its liabilities. Government funding provided to a not-for-profit organization is considered to be a contribution. There are three types of contributions identified for purposes of this Section:
- A restricted contribution is a contribution subject to externally imposed stipulations that specify the purpose for which the contributed asset is to be used. A contribution restricted for the purchase of a capital asset or a contribution of the capital asset itself is a type of restricted contribution.
- An endowment contribution is a type of restricted contribution subject to externally imposed stipulations specifying that the resources contributed be maintained permanently, although the constituent assets may change from time to time.
- An unrestricted contribution is a contribution that is neither a restricted contribution nor an endowment contribution.
An organization should recognize contributions in accordance with either:
- the deferral method or
- the restricted fund method
History of Section PS 4210
Date |
Development |
Comments |
December 2010 |
New Section |
This new Section is part of the new accounting standards for government not-for-profit organizations establishing recognition, measurement and disclosure standards. Sections 4200 to 4270 are effective only for government not-for-profit organizations that elect to follow the standards for not-for-profit organizations in the CPA Canada Public Sector Accounting Handbook and are effective for fiscal periods beginning on or after January 1, 2012. |
Note: The above summary does not include details of consequential amendments made as the result of other projects.