Why is the distinction between a conditional and unconditional contribution important for accounting purposes?
Why is the distinction between a conditional and unconditional contribution important for accounting purposes?
Business/Professional Ethics Directors/Executives/Acct
8th Edition
ISBN:9781337485913
Author:BROOKS
Publisher:BROOKS
Chapter5: Corporate Ethical Governance & Accountabililty
Section: Chapter Questions
Problem 15.5EC
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Why is the distinction between a conditional and unconditional contribution important for accounting purposes?
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Step 1
Step 1
The main difference between conditional and non-conditional contributions is that to recognize a conditional contribution as the revenue it is required that the condition attached should be met. On the other hand, the unconditional contribution is recognized as revenue immediately.
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