NP-Types of restrictions and resources Flashcards
1
Q
Janna Association, a nongovernmental not-for-profit entity, received a cash gift with the stipulation that the principal be held for at least 20 years. How should the cash gift be recorded?
A
Term endowment gifts such as the one described in this question are temporarily restricted, becoming available for unrestricted use after a certain point in time. They are not permanently restricted because the time restriction will be satisfied when the specified time period (20 years in this case) expires.
