Contributed services – when do they have to be recorded in the financial statements?
Donated services are to be recorded in the financial statements when the services
- create or enhance a non-financial asset or
- require specialized skills, are provided by those possessing the skill, and would be otherwise purchased.
Donated services that meet these criteria should be recorded in the financial statements at fair value regardless of what the organization would have been willing to pay for the service. Donated services related to an individual’s personal service and do not include advertising space or airtime that should be treated as donated goods. Please contact us for more information or questions on contributed services.