### Understanding Membership Revenue Reporting for Nonprofit Organizations**Barrett Historical Society**, a nonprofit organization, charges a $100 annual membership. Of this amount, $25 is designed to cover quarterly newsletters, and the remainder is considered to be a contribution. The question at hand is: What standard(s) should Barrett consider in recording membership revenue for these two components?#### Revenue Recognition Standards:1. **ASU 2018-08 (Nonexchange transactions)** - **Application**: Would be used to report both components - $25 for the newsletter and $75 as a contribution.2. **Topic 606 (Exchange transactions)** - **Application**: Would be used to report both components - $25 for the newsletter and $75 as a contribution.3. **Combination Approach** - **Application**: - ASU 2018-08 (Nonexchange transactions) would be used to report $25 for the newsletter. - Topic 606 (Exchange transactions) would be used to report $75 contribution. - **Note**: This is the correct answer as indicated.4. **Inverse Combination Approach** - **Application**: - Topic 606 (Exchange transactions) would be used to report $25 for the newsletter. - ASU 2018-08 (Nonexchange transactions) would be used to report $75 contribution.### Conclusion:For Barrett Historical Society, the recommended approach is to report $25 for the newsletter under **ASU 2018-08** (nonexchange transactions) and $75 contribution under **Topic 606** (exchange transactions). This method ensures that the organization adheres to the appropriate standards for recognizing revenue from both membership fees and contributions.

The standards referred to in the question pertain to different set of rules that are applicable in…

Barrett Historical Society, a nonprofit organization, charges a $100 annual membership. Of this amount, $25 is designed to cover quarterly newsletters, and the remainder is considered to be a contribution. What standard(s) should Barret consider in recording membership revenue for these two components? OASU 2018-08 (nonexchange transactions) would be used to report both components - $25 for newsletter and $75 contribution. Topic 606 (exchange transactions) would be used to report both components - $25 for newsletter and $75 contribution. ASU 2018-08 (nonexchange transactions) would be used to report $25 for newsletter and Topic 606 (exchange transactions) would be used to report $75 contribution. Topic 606 (exchange transactions) would be used to report $25 for newsletter and ASU 2018-08 (nonexchange transactions) would be used to report $75 contribution.

Barrett Historical Society, a nonprofit organization, charges a $100 annual membership. Of this amount, $25 is designed to cover quarterly newsletters, and the remainder is considered to be a contribution. What standard(s) should Barret consider in recording membership revenue for these two components? OASU 2018-08 (nonexchange transactions) would be used to report both components - $25 for newsletter and $75 contribution. Topic 606 (exchange transactions) would be used to report both components - $25 for newsletter and $75 contribution. ASU 2018-08 (nonexchange transactions) would be used to report $25 for newsletter and Topic 606 (exchange transactions) would be used to report $75 contribution. Topic 606 (exchange transactions) would be used to report $25 for newsletter and ASU 2018-08 (nonexchange transactions) would be used to report $75 contribution.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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