2. Accounting for contributions received in the form of goods and services
(CPA Canada Handbook, Chap. 4410.16)
It is up to individual organizations to choose whether or not they will account for contributions received in the form of goods and services in their financial statements. However, in accordance with the accounting standards applicable to non-profit organizations, if an organization does account for such contributions in its financial statements, it must ensure that the following three conditions are met:
1. The fair value of these contributions can be reasonably estimated;
2. The goods and services received are used for operational purposes;
3. The goods and services received are of a kind that the organization would have otherwise purchased.