What does conditional contribution mean on the CPA exam?
Conditional contribution. A promised gift that depends on a barrier the recipient must overcome and a right of return if it does not. It is not revenue until the barrier is met.
Defined against ASC 958-605-25-5.
Which CPA exam sections use conditional contribution?
Conditional contribution appears in the FAR section of the CPA exam.
Related terms
- annual exclusion: The amount a donor may give each recipient each year with no gift tax and no return.
- contract asset: The right to consideration for goods or services already transferred, where the right still depends on something other than the passage of time.