worldwide helpers and its foundation have adopted sfas 136 transfer of assets to a n 607241

Aug 29, 2021 | Uncategorized

World-Wide Helpers Foundation, a nonprofit entity, received a cash donation in 2005 from Herold Smith. World-Wide Helpers Foundation is controlled by WorldWide Helpers, a nonprofit entity that raises resources for others. The resources of World-Wide Helpers Foundation are used for the benefit of World-Wide Helpers. WorldWide Helpers and its foundation have adopted SFAS 136, Transfer of Assets to a Not-for-Profit Organization or Charitable Trust That Raises or Holds Contributions for Others, for its 2005 financial statements. How should World-Wide Helpers Foundation account for the cash donation?

  1. As an increase in contribution revenues.
  2. As an increase in liabilities.
  3. As either an increase in contribution revenue or liabilities.
  4. As neither an increase in contribution revenue or liabilities.