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    Ondicate whether the organization should recognize the desc

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    In the following situations and indicate whether the organization should recognize the described contributed services as revenue (offset by a corresponding expense). Briefly justify your response.

    1.Camp Chi-Wan-Da, a summer camp for disadvantaged youth, benefits from the services of four physicians, each of whom spends two weeks at the camp providing medical services to the campers. The doctors receive free room and board but no salary. Camp association standards require that a camp of Chi-Wan-Da's size either have a physician on the premises or one on-call.

    2. A neurologist serves on the board of trustees of the Neurological Disease Foundation, an organization that funds clinical research. He was asked to serve because of his expertise in the area of neurological research and he chairs the board's committee that selects grant recipients.

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    Solution Preview

    The "rule" is that "contributions of services are recognized only if the services received (a) create or enhance nonfinancial assets or (b) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation." ...

    Solution Summary

    The rule is given and then each situation is discussed briefly (one or two sentences).