Not-for-Profits' reporting costs of soliciting contributed services clarified.

• Position: Accounting & auditing news - Brief Article

Questions have arisen about not-for-profit organizations' reporting the costs of soliciting contributed services that do not meet the recognition criteria for contributions in FASB Statement No. 116, Accounting for Contributions Received and Contributions Made. The AICPA's Accounting Standards Executive Committee developed a prospectus for a proposed Statement of Position to address this issue. At its Mar. 27 meeting, the FASB objected to AcSEC's undertaking the project. As announced in the FASB's Action Alert No. 02-14, the FASB believes a project is not necessary to clarify the existing GAAP that addresses this issue.

The FASB believes that paragraphs 26-28 of FASB Statement No. 117, Financial Statements of Not-for-Profit Organizations, require that information about expenses be reported by functional classification and that fund-raising activities include soliciting contributions of services from individuals, regardless of whether...