More than 1 answer to Codification SIM????

  • Creator
    Topic
  • #185522
    m3332
    Member

    So I had a codification SIM and I found the answer in two different places. Both places had the EXACT same wording. I was not sure which one I was supposed to use since they were both the same wording and answered the SIM question…

    Any thoughts????

    AUD - 87
    FAR - 72
    REG - N/A
    BEC - N/A

Viewing 2 replies - 1 through 2 (of 2 total)
  • Author
    Replies
  • #552495
    m3332
    Member

    I have this question in the back of my book (Gleim). It is a couple years old (lots of wear and tear), and the SIM answer pages are shot, so I cannot see the answer. I can find stuff in the code when I use the online study guide, but I don't know what one is correct?!?!?!?!

    Here is the question.

    Johnson Inc. donated $100,000 to Not-for-profit A. NFP-A has decided to invest the $100,000 and give the interest to NFP-B. The two are interrelated, and NFP-A is not acting as an agent. How should NFP-A recognize the $100,000?

    I have found these two on my online study unit codification. Which one would be the correct answer????

    #1) 958-20-25-1 Recognition

    General

    > Contributions Received for a Financially Interrelated Beneficiary

    Pursuant to paragraph 958-605-25-27, if a recipient entity and a specified beneficiary are financially interrelated entities and the recipient entity is not a trustee, the recipient entity shall recognize a contribution received when it receives assets (financial or nonfinancial) from the donor that are specified for the beneficiary. For example, a foundation that exists to raise, hold, and invest assets for the specified beneficiary or for a group of affiliates of which the specified beneficiary is a member generally is financially interrelated with the not-for-profit entity or entities (NFPs) it supports and recognizes contribution revenue when it receives assets from the donor. See Examples 1 through 3 (paragraphs 958-20-55-3 through 55-17) for illustrations of this guidance.

    #2) >> Financially Interrelated Entitles

    958-605-25-27

    If a recipient entity and a specified beneficiary are financially interrelated entities and the recipient entity is not a trustee, the recipient entity shall recognize a contribution received when it receives assets (financial or nonfinancial) from the donor that are specified for the beneficiary.

    I am leaning towards the second one because the first one refers to it and uses “pursuant to”.

    AUD - 87
    FAR - 72
    REG - N/A
    BEC - N/A

    #552500
    m3332
    Member

    I have this question in the back of my book (Gleim). It is a couple years old (lots of wear and tear), and the SIM answer pages are shot, so I cannot see the answer. I can find stuff in the code when I use the online study guide, but I don't know what one is correct?!?!?!?!

    Here is the question.

    Johnson Inc. donated $100,000 to Not-for-profit A. NFP-A has decided to invest the $100,000 and give the interest to NFP-B. The two are interrelated, and NFP-A is not acting as an agent. How should NFP-A recognize the $100,000?

    I have found these two on my online study unit codification. Which one would be the correct answer????

    #1) 958-20-25-1 Recognition

    General

    > Contributions Received for a Financially Interrelated Beneficiary

    Pursuant to paragraph 958-605-25-27, if a recipient entity and a specified beneficiary are financially interrelated entities and the recipient entity is not a trustee, the recipient entity shall recognize a contribution received when it receives assets (financial or nonfinancial) from the donor that are specified for the beneficiary. For example, a foundation that exists to raise, hold, and invest assets for the specified beneficiary or for a group of affiliates of which the specified beneficiary is a member generally is financially interrelated with the not-for-profit entity or entities (NFPs) it supports and recognizes contribution revenue when it receives assets from the donor. See Examples 1 through 3 (paragraphs 958-20-55-3 through 55-17) for illustrations of this guidance.

    #2) >> Financially Interrelated Entitles

    958-605-25-27

    If a recipient entity and a specified beneficiary are financially interrelated entities and the recipient entity is not a trustee, the recipient entity shall recognize a contribution received when it receives assets (financial or nonfinancial) from the donor that are specified for the beneficiary.

    I am leaning towards the second one because the first one refers to it and uses “pursuant to”.

    AUD - 87
    FAR - 72
    REG - N/A
    BEC - N/A

Viewing 2 replies - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.