A pledge is a Conditional Pledge if contribution depends upon a future and uncertain event. Challenge grant - donations are made only when other donations are received 2. Cost reimbursement grant - promisee must incur certain qualifying expenses before the promise becomes unconditional 3. The mere passage of time is not a condition. A condition is different from a restriction .
Restrictions constrain the use of donated assets Conditions are prerequisites for giving.
On February 9, the contribution is made and the bill paid. January 1 - No entry, at this point in time the pledge is considered conditional. Payable 800 Cash 800 Long-Term Pledges. Long-term pledges should be recorded at the present value of their cash flows. The discount rate used should consider the risks associated with donation.